Adding Value by Dennis O'Hagan

Foreclosures up for first half of 2009

  The below article was written by Danny Gallagher - McKinney Courier-Gazette on Wednesday, July 15, 2009

Collin County's foreclosures rose by more than two-thirds...

Real estate experts who compiled foreclosure data for the first half of 2009 used jarring words like "skyrocketed" to describe their findings.

Foreclosures in Collin County rose by more than 75% for the first half in 2009 compared to the same time in 2008, according to recent data complied for Foreclosure Listing Service for the Dallas-Fort Worth area.

A total of 130 homes went on the auction block from January to July this past year compared to only 74 homes that were foreclosed on in the same time frame in 2008, a difference of 76 percent, according to tabulated data.

Collin County had the second highest year-to-date difference of the year.  Denton County posted the highest increase rate with 156 homes in the first half of 2009 representing an increase of 136 percent, according to collected data.

"Denton and Collin Counties do not have the largest volume of commercial postings," said FLS senior president George Roddy.  "That title still belongs to the Metro's most urban counties - Dallas and Tarrant."

Dallas County only posted 27 percent increase from the first half of 2008 to 2009, and Tarrant County actually saw a decrease of 27 percent in foreclosures for the same period, according to the data.

"However, both Denton and Collin Counties have seen tremendous growth in both the commercial and residential real estate markets over the last decade," Roddy said.  "That growth has led to these two suburban counties laying claim to a bigger piece of the foreclosure pie.  About 23 percent of the entire Metro's commercial posting activity for the first seven months of this year rests within the boundaries of Collin and Denton Counties."

Economic Update

On Tuesday, May 26, the Conference Board reported that its consumer confidence index rose to 54.9 in May from an upwardly revised 40.8 in April. It was the biggest increase in six years. Economists had expected an increase to 42.3. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Standard & Poor’s / Case-Shiller 20-city housing price index dropped 18.7% from March 2008 to March 2009. It was the second straight month the index didn't post record drops, indicating that the slump in home values might be easing.

The National Association of Realtors said existing home sales rose 2.9% in April to a seasonally adjusted annual rate of 4.68 million from 4.55 million in March. Economists had expected an annualized rate of 4.66 million homes.

Orders for durable goods, items expected to last three or more years, rose 1.9% in April after a revised lower 2.1% drop in March. This was the second increase in the last three months after having recorded six straight declines. Economists had anticipated orders for durable goods to rise only 0.5%.

Initial claims for unemployment benefits fell by 13,000 to 623,000 in the week ending May 23 from a revised figure of 636,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending May 16 rose to 6.78 million, a record-high figure for the 17th straight week.

New home sales rose 0.3% in April to a seasonally adjusted annual rate of 352,000 from a downwardly revised rate of 351,000 in March. Economists had expected a sales pace of 360,000 units.