As foreclosures continue to mount nationwide, a watchful eye is being kept on our housing market and economy. New statistics released by RealtyTrac yesterday show that the state of Nevada experienced the greatest foreclosure rate per household in the first quarter of 2007:
Nevada documented the highest state foreclosure rate in the first quarter, one foreclosure filing for every 75 households -- 3.5 times the national average. The state documented a total of 11,514 foreclosure filings during the quarter, an increase of 66 percent from the previous quarter and more than double the total reported in the first quarter of 2006. - RealtyTimesWhile there are some alarming numbers coming out of other states as well (some 37 of our 50 states saw increasing in foreclosure rates in Q1 2007), this comes as little surprise to most in the wake of all the woes the housing market has been experiencing lately. With subprime defaults increasing and a grim forecast for the near future, many are calling for legislative changes to help keep Americans in their homes.
But don't be fooled by the raw numbers - while Nevada is experiencing a certain 'bump' in the percentage of homes currently in a stage of foreclosure, the situation with regards to foreclosures isn't as dire as it may seem. Homeownership rates are higher than ever, especially in high growth states such as Nevada.
The 'subprime effect', while it has garnered much of the national news in recent weeks, actually has little to do with the rise in current foreclosures:
"Approximately one percent of all homes going into foreclosure are owned by subprime borrowers, and likely closer to 0.5 percent, says NAR Senior Associate Walt Molony. That's one home in foreclosure out of approximately 200, suggesting that high foreclosure rates are not just a subprime problem but due to a wide range of other causes."Moral of the story? It's not as bad as it looks, but it could be better.