Keeping the Foreclosure Numbers in Perspective

The foreclosure crisis is a regional problem, not a systemic problem.
It could become a systemic problem, of course, but we're a long way from that now.
While the national rate of foreclosure had increased by a whopping 79 percent in the previous year, it was still only 1.033 percent. Since about 30 percent of homes are owned mortgage-free, this means that only 7/10 of 1 percent of all homes are in foreclosure.

In the top 100 housing markets, the average foreclosure rate was somewhat higher, 1.38 percent. Many of the areas suffering the highest increases in the foreclosure rate were rising off a rate that was tiny.


The top 10 foreclosure areas in America are generally areas of extreme price change – changes far from the national average of 46.92 percent home price appreciation over the last five years.

Seven of the top 10 foreclosure areas experienced major price spikes in the last five years.

That pattern continues when you examine the top 25 foreclosure areas as well.

The seven areas with the top price appreciation for the last five years averaged a stunning 91.6 percent increase, nearly double the national average.