Metro Foreclosures: California Catch-up
Foreclosure activity decreased in the majority of the nation’s 100 largest metropolitan areas in the second quarter of 2006, including Indianapolis (down 32 percent from the previous quarter), Atlanta (down 37 percent), Dallas (down 12 percent) and Denver (down 18 percent). But those four cities still documented the four highest metro foreclosure rates among the top 100 cities, according to RealtyTrac’s just released Q2 U.S. Metropolitan Foreclosure Report
A few cities posted increasing foreclosure activity in the second quarter, including Stockton, Calif. (up 2 percent from the previous quarter), and the Texas cities of Austin (up 7 percent) and Houston (up 40 percent). All three of those cities' foreclosure rates were among the nation's 10 highest. Miami’s foreclosure activity increased 14 percent and the city reported the 11th highest metro foreclosure rate.
Several other California cities also reported increasing foreclosure activity for the quarter. Modesto foreclosures spiked 65 percent, Fresno foreclosures jumped 54 percent and Sacramento foreclosures were up 24 percent. Even San Francisco foreclosure activity was up 23 percent, although that city’s foreclosure rate remained relatively low and ranked 61st among the 100 largest metros.
All this points to the development of an interesting trend: historically low California foreclosure rates are starting to gain ground on foreclosure rates in the Midwest and South, which seem to be leveling off after a sharp increase in the first quarter.