Foreclosures Set Record in First Half of 2007

The housing market remains shaky with foreclosures setting a record in the first half of the year, though stabilizing somewhat in the month of June.

RealtyTrac reported that were more than 925,000 foreclosure notices filed nationwide from January though June, a rise of 56 percent from the same period in 2006. There is a national foreclosure rate of one home foreclosure filing for every 704 households, according to the Irvine, Calif.-based provider of an online database of real estate listings, pre-foreclosure information, trustee sales, Sheriff’s notices, and other home sale information.

Nevada is the top state for foreclosure filings ranked by filings per household. In June, Nevada had 1 foreclosure filing for every 175 households, four times the national average. Nevada has topped the list for the last six months, according to RealtyTrac.

California, the largest state, had the greatest number of foreclosures in June with 38,801, or one foreclosure for every 315 households.

About 58 percent of the properties in foreclosure are tied to subprime loans, according to a RealtyTrac spokesperson.

The one bright spot from RealtyTrac was June’s 7 percent decline in foreclosure notices compared to May. However, the 164,644 filings in June this year were up 87 percent from June 2006.

Yesterday, the National Association of Realtors announced that home sales will drop 1.4 percent this year and housing starts will decline next year as properties go unsold. In May, the median price of a home was $223,700, down 2.3 percent from May a year ago.