Slowdown in Foreclosure Pace in June

July 20th, 2008 · No Comments

Experts opine that although there is a slowdown in the pace of foreclosures in June it is nothing much to crow about – maybe it is just the lull before the storm.

RealtyTrac releases monthly reports on foreclosure figures. In Connecticut there were 1,623 foreclosure cases for June. It calculates to a foreclosure rate of 1:882 for the month. Compared to June 2007 it marked a decrease by 32%. In the previous year in June there were 2,386 foreclosure postings and the rate was 1:581. In Connecticut the foreclosures were down by 0.49% from May.

Across the country there 252,363 foreclosed houses in June this year. It is 53% rise from June of the previous year. But it is a drop by 3% from May 2008. Nevada with a foreclosure rate of 1:122 topped the list as regards rates.

RealtyTrac admitted that rise and fall of numbers couldn’t always be accurate because of methods used for collection. Sometimes the numbers were too little. In Vermont in June this year, foreclosures increased by 315.5% from the previous year when there were only six foreclosures in June. From this it would not be wise to draw conclusions said David Fink of Partnership for Strong Communities. He quipped, “I wouldn’t throw a party just yet.”

There has been hectic efforts by government and community groups with the cooperation of the lenders to stem the tide of foreclosures. Whether that is having an impact it is too early to say. There are grave doubts that the crisis has blown over. This is broadly speaking true about the national foreclosure weather.

RealtyTrac noted that foreclosures dropped by 3% from the previous month but it also noted a year-over-year increase of above 50%. The foreclosure crisis has not peaked as yet. For the mood in Connecticut one will have to watch the foreclosure figures of autumn and winter.

Vincent Valvo of the Warren Group’s real estate publications said that fuel prices and heating costs would add to the troubles raging in Connecticut and New England’s property market. People who have so far just been managing with their pay cheques will find it difficult to cope with rising prices and mortgages. This will lead to more foreclosures. That will trigger further slumping in the real estate in a cyclical fall out. Concerns are being expressed about there being more accidental fires, as people will opt more and more for unconventional heating.