The first quarter of 2010 saw a considerable rise in the number of Houston distressed properties and foreclosed homes. The city recorded a 63.2% jump in foreclosure rate compared with the same period of the previous year.
Distressed real estate in Texas still contributes to the whole state’s precarious housing market condition, with Houston recording a significant jump in foreclosure rates. Compared with the fourth quarter of 2009, the city’s first quarter results translate to a 27% rise.
According to national statistics, eight of the ten housing markets all around the U.S. that were considered as foreclosure-troubled spots have experienced declines in the number of distressed property listings and foreclosures during the first quarter. Unfortunately, Houston was not among these eight areas.
However, Houston did do well by occupying a lower rank among metropolitan areas. It ranked 96th among 206 metros in terms of foreclosures. Despite this, the first quarter rise is still being considered as substantial by local market observers.
Among Houston distressed properties, around .5% eventually went into foreclosure during the first three months. Over 11,000 households filed for foreclosure during the period compared with the whole-year number of over 28,000 in 2009. Nationwide, one out of 138 homes foreclosed in the first quarter of the current year. The figure translates to a .72% rate.
Other cities in Texas ranked outside of the top 50 in terms of nationwide foreclosures. The first quarter showed Austin coming in at 116, while Dallas-Fort Worth occupied the 84th position. Real estate analysts have stated that the foreclosure decline in some of the country’s areas that were previously considered as foreclosure hot spots was largely due to government programs.
The federal government has launched several programs during the year to battle foreclosure, including addressing the problem of Freddie Mac and Fannie Mae foreclosures. Realtors have warned though, that the decline of foreclosure rates in these previously known hot spots does not mean that the housing crisis is over. They added that it could just be a temporary break brought about by federal intervention.
The number of Houston distressed properties continue to rise, making market experts speculate that another foreclosure wave is to be expected in the city once the federal programs have run their course.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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