ForeclosureRadar: Foreclosure Sales Down in Western States
By: Tory Barringer
ForeclosureRadar issued its Foreclosure Report for June on Wednesday, revealing that foreclosure sales fell significantly in the three largest foreclosure states in the company’s coverage area.
According to the report, foreclosure sales in California were down 13.4 percent over May and 48.8 percent over June 2011. Arizona and Nevada also saw a downturn in sales, showing month-over-month decreases of 18.5 percent and 14.6 percent, respectively. Year-over-year, Arizona’s foreclosure sales were down 42.1 percent, while Nevada’s sales fell 72.1 percent.
Other states in ForeclosureRadar’s coverage area reported either flat or decreased sales both on a month-over-month and year-over-year basis.
In addition, notice of sales in Arizona were down 27.7 percent over last month. Nevada notice of defaults fell 22.7 percent over May, and California notice of defaults were basically flat, seeing a slight decrease of 0.9 percent from May.
The report speculated that low home sales in the region will continue to suffer as the declining level of foreclosure sales drives down the inventory. In California, banks take on average 272 days to resell properties taken back at auction. ForeclosureRadar warned Realtors, investors, and homebuyers to brace themselves for a significantly lowered inventory in 2013’s selling season.
“Today, California governor Jerry Brown signed into law the Homeowner Bill of Rights, an anti-foreclosure package which naively thinks that slowing foreclosures will benefit homeowners and the economy by leaving those owners stuck in their prison of debt,” said O’Toole. “We’ve long said negative equity, not foreclosures, are the problem, and this bill, like almost all government efforts to date, does nothing to truly help underwater borrowers.”
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