More than 92,000 homes entered into some stage of foreclosure nationwide this July - up about 5 percent from June and 18 percent higher than in July 2005, according to RealtyTrac, an on-line marketplace for foreclosed properties.
Michigan was one of the hardest hit of all the states, with a 25 percent spike from a year earlier.
Dave Webb, owner of the Hudson & Marshall, reports that the majority of the 250 Michigan properties primed for auction, about 150 in all, lie within 60 miles of Detroit.
Now is a cheap time to move to Michigan.
Statewide, house sales dropped by 29.9 percent from a year ago, according to the California Association of Realtors.
That translates to an unsold inventory index statewide of 7.5 months, compared to an index of 2.9 a year ago. The California Association of Realtors uses the index to measure the number of months it would take to deplete the supply of homes on the market at the current sales rate.
For Monterey County, July's unsold inventory index was 14 months; Salinas was 15. Last year in July, Monterey County had an unsold inventory index of just under 4, according to Sandy Haney, chief executive officer of the Monterey County Association of Realtors.
RealtyTrac, an online marketplace for foreclosure properties, said Wednesday it has been listed in the top 500 fastest-growing private U.S. companies by Inc. magazine.
In recent years rising consumer demand was driven by rising housing prices. People were willing to spend on a wide range of goods because they felt more affluent as the prices of their houses and condominiums rose in a bull real estate market. The national savings rate went negative in the United States. But now with the real estate bubble bursting in most parts of the US we run the real risk of a recession in 2007. That recession would likely turn into a world recession.
|Share |||By Randall Parker at 2006 September 12 09:42 PM Economics Housing|