Third quarter 2007 results are in and not looking good for the real estate market. Foreclosures continue to rise across the nation. The largest contributor to the increase in the foreclosure rate is adjustable rate mortgages.
Between 2004 and 2006 adjustable rate mortgages were given to just about anyone who could sign their name on the dotted line and show proof of a heart beat. Now with the real estate market slow, people who can not afford their mortgage are falling into foreclosure. The scary part is there are still thousands of ARMs that are due to adjust in 2008.
The state with the highest foreclosure rate is Nevada with one in every sixty one homes falling into foreclosures. The foreclosure crisis in Nevada is also due in part from over building of homes by home builders and speculator real estate investing. Never the less Las Vegas which is located in Nevada has one of the best work forces in the nation. The state population also continues to grow rapidly which will help the local real estate market in the future.
The other top 5 states with the highest foreclosure rates in the nation are:
California with 1 out of 88 homes going into foreclosure
Florida with 1 out of 95 homes going into foreclosure
Michigan with 1 out of 102 homes going into foreclosure
Ohio with 1 out of 107 homes going into foreclosure
Colorado with 1 out of 109 homes going into foreclosure
Almost all states are experiencing an increase in the number of foreclosure filings. States like Idaho (thank include Boise, Nampa, Eagle, Start and Meridian Cities), that rank 19 in foreclosures have a 138 percent increase in the number of foreclosure filings from the same time one year ago.
Some of you may say, “The foreclosure rate may be increasing for the entire nation, but real estate is a local market”. Well that is true; real estate is a local market. Some areas of the nation may be experiencing a buyers market while others are experiencing a strong buyers market.
If you are interested to see how your state ranks for foreclosures, check out the article by RealtyTrac.