LESS THAN 1% OF HOME IN FORCLOSURE IN S.C. METRO AREA

Wednesday, 22 April 2009
By Andy Owens
aowens@scbiznews.com

CHARLESTON — Less than 1% of the homes owned in South Carolina’s largest metropolitan areas are in foreclosure, according to data released this morning.

A national comparison of homes owned vs. homes in foreclosure shows the foreclosure problem to be concentrated in a relatively small number of metro areas, said the CEO of RealtyTrac, a national real estate data tracking firm.

The Columbia metropolitan statistical area posted the second-lowest percentage of homes in foreclosure statewide for the first quarter of 2009.

Spartanburg’s metropolitan statistical area posted the lowest percentage of homes in foreclosure for the first quarter of 2009. The second highest rate was in the Greenville-Mauldin-Easley MSA.

The Charleston-North Charleston metropolitan statistical area posted the highest percentage of homes in foreclosure at 0.77%.

RealtyTrac released its analysis of foreclosures in the nation’s 203 MSAs, which include metropolitan areas with at least 200,000 people. The analysis shows a percentage of the number of homes in a region that have received at least a notice of default, which is one of the first steps in the foreclosure process.

The Columbia MSA ranked 155 out of 203 with 0.19% of homes with at least one foreclosure filing during the first three months of 2009. The Columbia metro area saw a 20.39% decline in foreclosures in the first quarter compared to the fourth quarter of 2008.

The Greenville-Mauldin-Easley MSA ranked 66 with 0.59%. The Greenville metro area saw a 0.06% decline in foreclosures in the first quarter compared to the fourth quarter of 2008.

The Charleston-North Charleston MSA ranked 51 with 0.77%. The Charleston metro area saw a 36.56% increase in foreclosures in the first quarter compared to the fourth quarter of 2008.

Las Vegas-Paradise, Nev., posted the highest percentage at 4.48%.

Merced, Calif, was the next highest at 4.21%.

Cape Coral-Fort Myers, Fla., was third at 3.85%.

Stockton, Calif, was fourth at 3.72%.

Riverside-San Bernardino-Ontario, Calif., finished the top five at 3.54%.

“The metro areas with the highest levels of foreclosure activity in the first quarter of 2009 paint a picture of concentrated problems in a relatively small number of hard hit areas,” said James J. Saccacio, RealtyTrac’s CEO.

Saccacio said sales activity appears to be increasing in some of these larger markets as home prices have fallen to levels that are attractive to first-time homebuyers and investors.

“While we expect many of these metro areas to continue to experience high levels of foreclosure activity throughout 2009, we also expect to see other markets rise up the ranks as unemployment rates surge throughout the country,” he said.

Nationally, RealtyTrac reported 0.63% of homes in the U.S. had a foreclosure filing in the first quarter of 2009 or 803,489 homes.

Last week, RealtyTrac reported a 9% increase in foreclosure activity across the U.S. from the last quarter of 2008 to the first quarter of 2009. Saccacio attributed a declining rate of actual bank ownership of foreclosed on properties, called REOs, for the quarter to an early year moratorium on foreclosures.

RealtyTrac forecasted that a large number of new notices of default and a lifting of the moratorium could increase those numbers in the second quarter of the year.

Published April 22, 2009

If you are considering making purchasing a primary residence or investment property in the Greater Charleston area please feel free to call Owen at 843.224.5398 or e-mail Owen@OwenTyler.com.