We hear a lot about how strong the economy is, but is it?
The easy answer is: the economy is strong if you’re doing well financially – it isn’t if you aren’t.
I was surprised to read recently in a Think Realty Magazine that, nationwide, foreclosure rates are increasing month over month for the first time after 36 months of decreases, and foreclosure starts increased in 44 percent of U.S. markets in July.
30,187 properties started the foreclosure process in July which was the third consecutive month with year over year increases. Nationwide, one in every 2,086 U.S. housing units had a foreclosure filing in July. Some areas, naturally, are being hit harder than others.
Here are some monthly increases over the same month a year ago:
Los Angeles, CA — May up 14 percent, June up 2 percent, July up 20 percent
Miami, FL — May up 4 percent, June up 35 percent, July up 29 percent
Houston, TX — May up 153 percent, June up 62 percent, July up 76 percent
Jacksonville, FL — May up 22 percent, June up 22 percent, July up 81 percent
Detroit, MI — May up 31 percent, June up 32 percent, July up 71 percent
Minneapolis – St. Paul — May up 47 percent, June up 100 percent, July up 32 percent
San Diego, CA — May up 20 percent, June up 7 percent, July up 20 percent
Indianapolis, IN — May up 94 percent, June up 12 percent, July up 107 percent
Austin, TX — May up 65 percent, June up 44 percent, July up 29 percent
I don’t know about you, but I was shocked by these high numbers. These numbers come from ATTOM Data Solutions which collects data from more than 2,200 counties nationwide, counties accounting for more than 90 percent of the U.S. population.
The point is that foreclosures are on the rise for the first time in over 3 years, so the economy is not great for everyone.
And, like the decline that happened in 2008-2010, it seems to be starting again and hitting hardest in the larger metropolitan areas. These areas typically experience some of the country’s greatest appreciation, but those strong gains can diminish quickly when followed by pretty severe declines. Are they coming back?
Don’t panic – nationwide foreclosure increases were up less than 1 percent over the same period last year, but this is something to be aware of and pay attention to. Knowledge is power if you know how to use that knowledge for benefit.
What do you think of these numbers?