We have a bubble in foreclosures. We are seeing growth rates so high, that we could be forgiven for thinking that foreclosures have "departed from fundamentals". In April, foreclosures were up a staggering 62% over the same month last year. According to RealtyTrac, a total of 147,708 home will put into foreclosure. If the housing market continues to add this number of foreclosures for 12 months, then we will see overall 1.7 million homes being dumped into an already bloated inventory of unwanted homes for sale.
Inevitably, we are forced to use similar language that was previously used to describe the housing bubble. These kind of growth rates simply cannot continue. The foreclosure rate will stabilise. We'll have a soft landing in foreclosures.
So where are the foreclosure bubble cities and states. Colorado is top of the list. Currently the state is suffereing one foreclosure filing for every 314 households. Connecticut is also making a strong showing..The state reported 4,207 foreclosure filings during the month, more than twice the national average. Other states with foreclosure rates ranking among the nations 10 highest in April were California, Ohio, Georgia, Florida, Arizona, Illinois and Michigan.
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