Guess Which 4 States Accounted For More Than 50 Percent Of May 2008 Foreclosures
RealtyTrac released its most recent foreclosure statistics and if you only read the headlines, you think the entire country was on the verge of losing its homes. The underlying data tells a different story, however. More than half of the country's foreclosure activity in May 2008 was tied to just 4 states in the union:
- California (28 percent)
- Florida (14 percent)
- Arizona (5 percent)
- Michigan (5 percent)
In other words, the majority of mortgage defaults are coming from a small minority of states. See, between 2002 and 2006, California, Florida and Arizona were very popular with real estate speculators, many of whom over-extended themselves on real estate; and Michigan's economy has been decimated by job losses in the auto and manufacturing industries. In addition, these 4 states are among the nation's most populous.
It makes sense that they are distorting the national statistics. On a local level, the news is not so grim. Not only did 20 states show a reduction in monthly foreclosure activity, but many more fell below the national foreclosure average. That type of story, though, doesn't make for good headlines, is all.
How did Indianapolis and the surrounding counties fair for May? Indiana ranked 12th in the nation, with foreclosure filings down 3.32% from last month and up 3.01% over May 2007. Sample filings for counties in Central Indiana:
- Marion County: 1934 filings in May – 1 in every 214 housing units
- Hendricks County: 5 filings in May – 1 in every 10,686 housing units
- Hamilton County: 132 filings in May – 1 in every 724 housing units
- Boone County: 9 filings in May – 1 in every 2364 housing units
- Johnson County: 75 filings in May – 1 in every 719 housing units
Search the full May 2008 foreclosure report for yourself on RealtyTrac's Web site.