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Thursday, December 11, 2008

Without AZ, CA, FL, NV and MI, November 2008 Foreclosures Were Down By -1.10% vs. Last Year

According to data released today by RealtyTrac, foreclosure filings in November 2008 were reported on 259,085 U.S. properties, down by -7.35% from October (279,636 properties), but up by +28.22% from November 2007 (202,060 properties). November foreclosures were heavily concentrated in just four states: Arizona (13,136), California (60,491), Florida (49,190) and Nevada (13,962), and those four states accounted for 53% of the total foreclosures in November (136,779 out of 259,085 total).

If you analyze the raw data in the RealtyTrac press release, and take out those four states with the greatest concentration of foreclosures (AZ, CA, FL, NV), November foreclosures in the other 46 states and the District of Columbia actually declined by -10.31% compared to October (vs. the -7.35% reported by RealtyTrac for all states). And compared to November 2007, foreclosures in those other states increased by only +1.61% (vs. +28.22% reported by RealtyTrac for all states). Note: These percentages were not reported by RealtyTrac, they required a separate analysis and calculation.

Comment: The chart above (click to enlarge) of OFHEO house price indexes for Nevada, Florida, Texas and West Virginia tells part of the foreclosure story. The 2005-2007 real estate bubbles were concentrated in states like Arizona, California, Florida and Nevada (see chart), and it's those states where the foreclosure problems are now most concentrated. States like Texas that didn't experience a real estate bubble in 2005-2007 (see chart) are not experiencing foreclosure problems today. November foreclosures in Texas are down by -21% vs. October 2008 and down by -32% vs. November 2007. In West Virginia, there were only 34 foreclosures in November, down by -62% from October, and down by -31% from November 2007.

UPDATE: If you take out the FIVE worst states: AZ, CA, FL, NV and MICHIGAN, foreclosures were DOWN by -1.10% in November compared to November 2007 for the other 45 states and D.C.

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