Foreclosure Activity Remains Elevated Across U.S.
Date: 7/29/2010
Investors who have become increasingly rattled by recent signs of a stalled economic recovery got more food for thought this week in the form of a report showing that foreclosure activity remains high in some parts of the country.

According to RealtyTrac, 154 of 206 U.S. metropolitan areas covered in its report saw year-over-year increases in foreclosure activity.

Still the report wasn't without some promising points. For example, RealtyTrac added that foreclosure activity was down in nine of the 10 areas with the highest such rates. Also, the 20 metro areas for foreclosure activity were confined to four states that have largely driven the foreclosure wave since the collapse of the real estate market - Florida, California, Nevada and Arizona.

"The fragile stability achieved in many local housing markets hinges on improvements in the underlying economy, specifically job growth. If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas," said RealtyTrac CEO James Saccacio.

A large number of foreclosures on the market help to hold down real estate prices in general. The real estate sector has also been hit by lower buying activity in light of the expiration of the homebuyer tax credit.