Foreclosure filings (default notices, auction notices and bank repossessions) showed a a 10% drop in November when compared with the previous month. However, this trend is not expected to last (according to RealtyTrac). This is still 68% higher than November 2006.
"[The slowdown] could indicate that foreclosure activity has topped out for the year. But, the true test of whether this ceiling will hold will come at the beginning of next year when we anticipate that a seasonal surge in foreclosure filings and another possible wave of resetting mortgages could place further pressure on the housing market." This statement was made by James Saccacio, RealtyTrac's chief executive.
"If the trend of flat or decreasing foreclosure activity we've seen over the past three months continues in the first quarter, it would certainly bode well for 2008." Saccacio added.
For months, most housing market indications have been negative. Home prices continue to fall, and there is possibility that this downward trend will continue into 2008. Since lower prices mean that home owners cannot tap into home equity, this trend could add to the foreclosures.
Foreclosure rates continute to be highest in Nevada, Florida and Ohio. Nevada had one filing for every 152 households. Florida moved into second place despite a 3 percent month-to-month drop. Ohio foreclosures fell 6 percent in November, pushing it from second to third place. California, where the foreclosure rate was one for every 325 households had more total filings than any other state with 39,992.
Source: CNN Money