Real Estate Woes this July

Bloomberg.com (July 12th)reported a statement today by RealtyTrac (which sells foreclosure data), that mortgage foreclosures rose 87% in June, over the number for June 2006, and that foreclosures for the first half of 2007 are 56% higher than the figures for that period in 2006. Total numbers of disclosures were highest in California, Florida, Ohio, and Michigan.

In terms of rate of foreclosures, Nevada had the highest in June, with one filing for every 175 households, four times the national average of one for every 704 households. Following Nevada were California (1 per 315), Colorado (1 per 317), Florida (1 per 347), Arizona (1 per 383), Ohio (1 per 403), and Michigan (1 per 420). RealtyTrac further reports that 58% of properties that are in the disclosure process are linked to borrowers with sub-prime loans, and that they expect U.S. foreclosures to reach 1.8 million by the end of the year.

Meanwhile, Bloomberg reports, the National Association of Realtors said that the supply of unsold homes hit a record 4.43 million in May. In a press release yesterday, the NAR said that home prices will drop by 1.4% this year, and housing starts will drop in 2008 due to higher mortgage rates and a glut of properties available. NAR also projected 865,000 new-home sales this year and 878,000 in 2008, compared to 1.05 million in 2006.