Raleigh foreclosures up; home sales increase from May

Posted July 25, 2008

— Foreclosures in Raleigh-Cary metro area jumped 64 percent in the second quarter of 2008 from the same period last year, industry numbers showed Friday.

RealtyTrac, an industry data group, said 1,515 homes had received at least one foreclosure notice.

Foreclosures were up 8.4 percent from May. The statewide increase for the same period was much more moderate at 2.2 percent.

Year-over-year statewide, the increase in foreclosures was almost 58 percent, for a total of 10,511 homes, the company said.

The rate in North Carolina is about half of the national average, where the foreclosure rate more than doubled in the past year, according to the data released Friday.

Nationwide, one in every 171 households was at some stage of the foreclosure process during the second quarter, RealtyTrac's data showed.

Not all the news in the Triangle and North Carolina real estate markets is grim, however.

Triangle home sales actually increased in June from May by 1 percent to 2,531 units, according to the North Carolina Association of Realtors. The total is down 37 percent from June 2007, but the real estate market was still strong at that point.

Home values, meanwhile, continue to increase despite slowing sales. The average selling price in June reached $255,382, up 5 percent from a year ago.

Statewide, housing sales increased 1 percent in June to 9,836, from May. Compared with June 2007, however, sales fell 27 percent.

The statewide average price did dip slightly to $226,032, down 2 percent from a year earlier.

Soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy have left strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their homes are worth and can't refinance into an affordable loan.

Foreclosure filings increased year-over-year in all but two states, North Dakota and Alaska.

Nevada, California, Arizona, and Florida continued to clock in the highest foreclosure rates. One in every 43 Nevada households received a filing during the quarter.

Cities in California and Florida accounted for 16 of the worst 20 metro foreclosure rates. Stockton, Calif., had the worst rate, with one in every 25 homes in the town receiving a foreclosure filing. That's nearly seven times the national average.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. Banks took back more than 222,000 properties nationwide in the second quarter, the company said. Bank repossessions accounted for 30 percent of total foreclosure activity, up from 24 percent in the previous quarter.

Economists estimated 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007.


This story is closed for comments.

Oldest First
View all
  • colliedave Jul 25, 2008

    A free market is a great thing, but some responsible government oversite is also a neccesity of a free market. If the older more strict rules of home lending had been kept in place the real estate bubble would never have gotten to the place it did.

    And just who created the market that said one must be a able to purchase a home regardless of the individual's ability to pay? Your beloved gorvernment!

  • giffman Jul 25, 2008

    ARM's are not that bad. I've had one from my credit union for the last 10 years and the rate is lower than when I first got it. The key is that I have a reputable bank that caps the interest rate to a 1% increase every 2 years. Throw in the fact that I've never paid PMI and I've save a bunch over the years.

  • The Fox Jul 25, 2008

    Not all ARMs are bad. I have a 3 year ARM (credit union) and it hasn't moved more than 1% over 7 years. Good timing I guess at each recalculation, and I made sure that interest rate movements were capped - 3% max for each period. Wasn't worried as I asked for a 13 year mortgage and therefore paying down mostly principal.

  • childofNC Jul 25, 2008

    PikeMom's right. I looked at lots of foreclosure homes. Some were downright scary. I went into room with my heart set on checking out the "sun room" first. I blew past everything to get to the room but had two thoughts on my way to it. 1) That's on interesting color of paint for the handrails in the stairway and 2) That piano looks like it was on the Titanic. When I got the to the sun room and was disappointed, I went back to the front entrance. The wife of the realator duo wouldn't even walk in the house. That paint on the handrails wasn't paint, it was mold. And there's a reason the piano looked like it had gone down with the Titanic.

  • PikeMom4real Jul 25, 2008

    One man's foreclosure is another man's great deal on a home.

    Yes,right along with the water left running,sugar in the carpets.Dog poo that was never cleaned up.Torn blinds,etc.In other words they never leave it decent for other's to live in.

  • foetine Jul 25, 2008

    it is the same cast of urban consultants earning a fortune off every city with their build a convention center pipedream. Remember when the vultures brought in that Blue Ribbon Urban Schmuck team that wanted to turn Dix into Smedes York's fantasyland and destroy the Farmer's Market?

  • trunkmonkee1971 Jul 25, 2008

    One man's foreclosure is another man's great deal on a home.

  • rabidpro Jul 25, 2008

    Hmmmmm.... How many of these foreclosures are sub-prime loans? How many readers understand what a 'sub-prime' loan is? When one looks inside the numbers, much of the increase is from either builders/developers/investors getting themselves stretched too thin financially, (having to break ground on the next house to get the construction draw to pay for a house still under construction)or from folks who had shaky credit and shaky debt to income ratios to start with. I say, let them all fail and let's start over with some sense.

  • Wags Jul 25, 2008

    Wags - Those 'old' loans may still be ARMs. The problem with an ARM (irrespective of when they orginated) is that the monthly mortgage can dramatically increase if interest rates go up. It has nothing to do with the age of the mortgage.

    It has nothing to do with rates. It depends on what Index is being used and what the margin was. If the Index has increased, then the rate will go up. Usually on the 2 yr ARMS, the margin was so high, it would always go up. That's why it doesn't make sense that someone would hold on to a 2 yr ARM for 5 years. The sub prime was loaded with 2 year ARMS. Very few 3 and 5 year ARMS.

  • Leonardo Jul 25, 2008

    foetine: "Raleigh is a town that demands you live beyond your means. They aren't happy if the real estate isn't over priced. If they can't smash your house and slap up a McMansion. How many millions have we poured into downtown so that millionaires can look down on us from their condos?"

    Can't you say the exact same thing about virtually every other major city in the United States? (except probably Detroit)