CALIFORNIA BUSINESS MINUTE
States with Most Foreclosures
02-16-12
Hi, I am Tim Johnson and welcome to the California Business Minute.
The website publication 24/7 Wall Street has released a new ranking of the states
with the most foreclosures. Using a methodology that includes a review of
foreclosure laws in each state, the average length of a foreclosure process by
state and the number of foreclosures, home values past and future using Fiserv-
Case Schiller to project home values. The examination provides an interesting
perspective on the housing market in the nation.
Apparently as much as the California housing market has been in the headlines and
sound bites in the press and new media, it doesn’t rank in the Top Ten. Sadly,
however, those ranked still face tough markets ahead. For example, in Ohio,
New York and Nevada home prices are forecasted to drop further by 3.8, 6.0 and
13.9 percent respectively. Additionally, some states like Connecticut,
foreclosures have to court for resolution. Also, the foreclosure process in some
states takes so long that foreclosures started in 2010 and specifically 2011 may
not be resolved until sometime this year. Finally, a strange conundrum is found
in the ranking of South Carolina. It has one of the more progressive economies
but is confronted by the downturn in the housing. It appears that may be a
function of low salaries and adjustable rates.
1. Florida
> 2011 foreclosure rate: 11.9%
> December, 2011 unemployment: 9.9% (6th highest)
> Home price change (2006Q3-2011Q3): -49% (3rd largest decline)
> Processing period: 135 days
2. New Jersey
> 2011 foreclosure rate: 6.4%
> December, 2011 unemployment: 9% (13th highest)
> Home price change (2006Q3-2011Q3): -22.6% (14th largest decline)
> Processing period: 270 days
3. Illinois
> 2011 foreclosure rate: 5.4%
> December, 2011 unemployment: 9.8% (7th highest)
> Home price change (2006Q3-2011Q3): -29% (7th largest decline)
> Processing period: 300 days
4. Nevada
> 2011 foreclosure rate: 5.3%
> December, 2011 unemployment: 12.6% (the highest)
> Home price change (2006Q3-2011Q3): -59.3% (the largest decline)
> Processing period: 116 days
5. New York
> 2011 foreclosure rate: 4.6%
> December, 2011 unemployment: 8% (23rd highest)
> Home price change (2006Q3-2011Q3): -13.6% (23rd largest decline)
> Processing period: 445 days
6. Maine
> 2011 foreclosure rate: 4.2%
> December, 2011 unemployment: 7% (19th lowest)
> Home price change (2006Q3-2011Q3): -6.0% (15th smallest decline)
> Processing period: 240 days
7. Connecticut
> 2011 foreclosure rate: 4.1%
> December, 2011 unemployment: 8.2% (19th highest)
> Home price change (2006Q3-2011Q3): -16.6% (19th largest decline)
> Processing period: 62 days
8. Hawaii
> 2011 foreclosure rate: 3.8%
> December, 2011 unemployment: 6.6% (13th lowest)
> Home price change (2006Q3-2011Q3): -20.2% (16th largest decline)
> Processing period: 220 days
9. South Carolina
> 2011 foreclosure rate: 3.7%
> December, 2011 unemployment: 9.5% (9th highest)
> Home price change (2006Q3-2011Q3): -10.2% (29th largest decline)
> Processing period: 150 days
10. Ohio
> 2011 foreclosure rate: 3.5%
> December, 2011 unemployment: 8.1% (21st highest)
> Home price change (2006Q3-2011Q3): -14.1% (21st largest decline)
> Processing period: 217 days
I am Tim Johnson and this has been the California Business Minute.
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