RealtyTrac’s monthly numbers are out today, which show that foreclosures eased 7 percent in June from reported levels during May — but still remain 87 percent above year-ago levels. May’s foreclosure numbers were 90 percent above year-ago levels, showing that foreclosure volume remains very, very high (and illustrating that the monthly drop in June is a common trend across the previous year). You’ll see most of the major media cover the 7 percent monthly drop, but as I’ve warned HW readers numerous times, the YOY trends are much more important. Here’s the full press release. Nevada, California, and Colorado posted the nation’s highest foreclosure rates in June, according to RealtyTrac:
… Nevada documented a foreclosure rate more than four times the national average and highest among the states for the sixth month in a row. The state reported 4,722 foreclosure filings during the month, a decrease of 10 percent from the previous month but more than three times the number reported in June 2006 [emphasis added]. Despite a 2 percent month-over-month dip in foreclosure activity, California registered the nation’s second highest state foreclosure rate … The state reported 38,801 foreclosure filings during the month, the most of any state for the sixth month in a row and more than three times the number reported in June 2006.
Looking at raw foreclosure numbers (instead of rates, which are weighted by population), RealtyTrac said that California, Florida and Ohio posted the highest volume of foreclosures. Florida reported 21,035 foreclosures, and Ohio reported 11,879, RealtyTrac said. Inexplicably, the RealtyTrac numbers show a drop in REO volume. According to the numbers released today, more than 26,000 properties nationwide are in REO, after nearly 29,000 were reported in May — a number that I think is probably vastly understated, given what I’ve been hearing from contacts in the industry. Update: Color me floored — look at this Bloomberg headline. Is it possible that the financial press is FINALLY starting to realize the importance of YOY comparisons?