Foreclosures up 13 percent in February

RealtyTrac released our February 2006 foreclosure numbers today, and they show U.S. foreclosures increasing for the third month in a row. We show 117,259 properties nationwide entered some stage of foreclosure in February, a 13 percent increase from the previous month and a 68 percent increase from February 2005. That's a foreclosure rate of one new foreclosure for every 986 U.S. households. Here's what our CEO, James J. Saccacio, had to say about the numbers:

"This is the third straight month the U.S. foreclosure rate has moved higher, and it’s the second straight month new foreclosures have topped 100,000. In addition, bank-owned properties accounted for 39 percent of the total number, which is a higher percentage than usual and indicates that fewer homeowners in default have been able to stop the foreclosure process by selling or refinancing during pre-foreclosure."

Georgia reported the nation's highest foreclosure rate for the second month, with one new foreclosure for every 329 households. Indiana and Colorado weren't too far behind, with one new foreclosure for every 427 households in Indiana, and one new foreclosure for every 443 households in Colorado.

Texas and Florida were on top in terms of sheer number of foreclosures. Together, the two states documented more than 23,000 new foreclosures, 20 percent of all new foreclosures across the country.

The rising numbers from the last few months have gained significant attention from the mainstream media as well as bloggers. For some people, the escalating numbers are evidence that supports their belief that a housing bubble exists and is about to burst. For others, the numbers simply show that the real estate market is softening. We don't see these numbers as overly alarming, but there are certainly signs the housing market (especially from the perspective of homeowners and sellers) is not as strong as it was a year ago.

How do these numbers play out in your area?