States with High Foreclosure Activity in Condo and Townhomes
August 2, 2007
Foreclosure activity remains high across the country. According to BargainNetwork.com, there were over 131,896 foreclosure filings in the U.S. in the month of June. That averages out to one filing for every 877 households. Nationally, while the majority of the filings involved single family homes, approximately 7.2% of those total filings involved townhomes and condos.
Five states in particular saw higher that average foreclosure rates in this sector. Hawaii (26.9%), Florida (14.0%), California (10.9%), Massachusetts (10.7%) and Illinois (8.3%) all experienced higher percentage of foreclosure activity involving townhome and condominium units during the month of June.
The notably higher than average foreclosure activity in these states presents potential buyers interested in condo/townhome units with additional opportunities. For instance, in:
Hawaii
Hawaii’s real estate market continues to do well when compared to the rest of the country. This is due in large part to the persistent high demand and limited supply of inventory which has kept real estate prices high. It’s not unusual for a seller to receive multiple offers on a property when it comes on the market.
| Hawaii |
|
| Total Foreclosure Count |
291 |
| Total Condo/Townhome Foreclosure Count |
78 |
| Percentage of the Total |
26.9% |
| State Rank |
36 |
| 1 Foreclosure (All Types) for every household |
1,583 |
| 1 Condo/Townhome Foreclosure for every household |
5,887 |
Florida
There’s no question that the most recent real estate boom rocketed the Florida market to new heights. Unfortunately, as is the case in Florida, what comes up must go down. This doesn’t mean that anyone should count Florida out. The state still boasts a strong economy, steady job growth and a great location. All factors that will continue to attract people to its borders.
| Florida |
|
| Total Foreclosure Count |
24,065 |
| Total Condo/Townhome Foreclosure Count |
3,367 |
| Percentage of the Total |
14.0% |
| State Rank |
2 |
| 1 Foreclosure (All Types) for every household |
304 |
| 1 Condo/Townhome Foreclosure for every household |
2,170 |
California
Although struggling with some of the heaviest foreclosure activity to date, California has historically proven to be a market in which property values have consistently appreciated. Data from the California Association of Realtors shows that the annual average sales price for an existing single family home over the past 37 years has been a solid 7.92%.
| California |
|
| Total Foreclosure Count |
28,482 |
| Total Condo/Townhome Foreclosure Count |
3,099 |
| Percentage of the Total |
10.9% |
| State Rank |
1 |
| 1 Foreclosure (All Types) for every household |
429 |
| 1 Condo/Townhome Foreclosure for every household |
3,939 |
Massachusetts
Recent drops in supply levels have fueled the speculation by many that the Massachusetts real estate market is coming more in “balance” and poised to rebound. In fact, the Massachusetts Association of Realtors this month reported that the condo/townhome sector experienced a significant drop in inventory supply levels, not seen since August 2005
| Massachusetts |
|
| Total Foreclosure Count |
509 |
| Total Condo/Townhome Foreclosure Count |
559 |
| Percentage of the Total |
10.7% |
| State Rank |
31 |
| 1 Foreclosure (All Types) for every household |
5,154 |
| 1 Condo/Townhome Foreclosure for every household |
48,013 |
Illinois
The real estate market and economy as a whole continues to grow at a steady rate. Interested buyers are currently enjoying a large selection of properties and lower interest rates than last year.
| Illinois |
|
| Total Foreclosure Count |
7,372 |
| Total Condo/Townhome Foreclosure Count |
609 |
| Percentage of the Total |
8.3% |
| State Rank |
31 |
| 1 Foreclosure (All Types) for every household |
664 |
| 1 Condo/Townhome Foreclosure for every household |
8,029 |
Condominiums and townhomes remain a popular choice among first-time buyers and empty-nesters. In several urban markets across the country, single-family home prices have become less affordable, fueling the interest in condos and townhouses. Baby-boomers and echo-boomers drawn to the idea of downsizing, or to rediscovering the convenience of living in revitalized downtown centers, are expected to continue fueling the demand for more units.
It is likely that the increase in available units, resulting from the higher foreclosure rates in this sector will present potential buyers with an opportunity to find the home of their dreams at an affordable price.