Los Angeles Foreclosures Level Off In July

IRVINE, Calif. – Foreclosure filings in the Los Angeles metro area leveled off in July, increasing just 1 percent after a 23 percent spike the month before, according to the RealtyTrac™ 2006 U.S. Foreclosure Market Report. The four-county metropolitan area recorded 4,340 properties entering some stage of foreclosure — 32 more than the previous month — and a foreclosure rate of one new foreclosure filing for every 1,250 households.

The metro area’s foreclosure rate ranked third highest among five major metropolitan areas analyzed by RealtyTrac, moving up a place from the previous month. New York and Philadelphia documented lower foreclosure rates than Los Angeles, while Dallas-Fort Worth and Chicago documented higher foreclosure rates than Los Angeles.

“The foreclosure rate in Los Angeles has been hovering close to the national average for the last two months, a sign that the area’s foreclosure market may be settling into a pattern that’s more in line with the rest of the country and with historical rates,” said James J. Saccacio, chief executive officer of RealtyTrac. “Low unemployment and turbo-charged home price appreciation have largely insulated the region from foreclosures in the last few years, but that insulation appears to be wearing thin. Homeowners who are not prepared for a cooling market may be in for a bit of a shock if they need to refinance or sell their property to avoid foreclosure.”

Los Angeles County was one of two counties in the four-county metropolitan area with increasing foreclosure activity in July. The county reported 2,001 properties entering some stage of foreclosure, a 14 percent increase from the previous month and a foreclosure rate of one new foreclosure filing for every 1,635 households. Despite increasing 30 percent over the last two months, the county’s foreclosure rate continued to register below the national average.

California reported 10,025 properties entering some stage of foreclosure in June, just six fewer than the previous month and the third most reported by any state. The state’s foreclosure rate of one new foreclosure filing for every 1,218 households continued to register slightly above the national average.

After hitting its lowest point year to date in June, U.S. foreclosure activity bounced 5 percent higher in July, with 92,845 properties entering some stage of foreclosure during the month — a foreclosure rate of one new foreclosure filing for every 1,245 households.

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