RealtyTrac’s U.S. Foreclosure Market Third Quarter Report indicates that foreclosure filings — 930,437 default notices, scheduled auctions and bank repossessions — were 4% above those of the previous quarter (yet represented a decline from the third quarter of 2009).

September’s 347,420 foreclosure filings represented an increase of nearly 3% compared with the previous month and an increase of 1% compared with a year ago.  The 102,134 bank repossessions reported in September represented the first time monthly bank repossessions have passed the 100,000.

“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James J. Saccacio, chief executive officer of RealtyTrac. “We expect to see a dip in those bank repossessions — and possibly earlier stages of the foreclosure process — in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks.”

Although down nearly 24% from the third quarter of 2009, California represented 21% of the nation’s total foreclosure activity in the third quarter … the nation’s largest foreclosure activity total. This in spite of the “robo-signers” issues.

Home sales for September … 

Sales of existing, single-family homes in California declined again …. 12.2% compared with a year earlier … and yet the median price of a resale home rose. Inventory is the issue … as is illustrated by the attached chart of sales of homes in Ross, CA.

Chief Economist for the California Association of Realtors, Leslie Appleton-Young, gave this explanation: “The inventory of homes priced under $500,000 continues to be lean, which is driving moderate or significant price appreciation in this price category. Conversely, the inventory of homes priced $1 million and higher is more than double the inventory of the under-$500,000 range, which is contributing to weaker prices at the high end.”

With the Unsold Inventory Index for existing, single-family detached homes relatively unchanged in September, at 6.2 months, up 6.1 months in August, sales are somewhat sluggish.

Posted by:  Tom Verkozen