Excluding AZ, CA, FL, MI and NV, Foreclosures Actually Decreased in August By -0.41%
Foreclosure filings were reported on 101,724 California properties in August, one-third of the national total and the most of any state. The state’s foreclosure activity increased more than 40 percent from the previous month and more than 75 percent from August 2007. California, Florida and Arizona together accounted for more than half of the nation’s foreclosure activity.
Bottom Line: Foreclosure problems are highly concentrated in just five states (AZ, CA, FL, MI and NV), which distorts the national picture significantly. Excluding the five states with the biggest foreclosure problems suggests a much less severe problem, and an actual improvement in August foreclosures in the other 45 states (-0.41% vs. July).
(Note: Foreclosure data are available at RealtyTrac for August 2008. Using the August 2008 foreclosure levels by state and the percent changes from July 2008 and August 2007, the foreclosure levels for August 2007 and July 2008 were calculated for each state. The five states listed above were then excluded to calculate the percentages in the table above.)