Not only is the real estate recovery market specific, distressed inventory levels vary by state.
For the 12-month period ending in September, the states of California, Florida, Texas, Georgia and Michigan had the highest number of completed foreclosures.
California led the way with 108,000 foreclosures, followed by Florida with 92,000. Texas, Georgia and Michigan recorded more than 50,000 foreclosures each during the period. All five states accounted for 47.7% of foreclosures during the period.
States with the lowest foreclosure rates included South Dakota, District of Columbia, Hawaii, North Dakota and Maine. The states with the lowest foreclosure activity levels reported less than 700 filings during the 12 months, with South Dakota reporting only 20 completed foreclosures.
The states with the highest foreclosure rates based on the percentage of mortgaged homes in the area included Florida, New Jersey, New York, Illinois and Nevada. Those with the lowest rates were Wyoming, Alaska, North Dakota, Nebraska and South Dakota, with foreclosure rates of 1.1% and below.