The new RealtyTrac metro foreclosure report is out today, and that means I have to say a bunch of shocking numbers on TV and then get to hear from all of you that I am skewing the numbers or focusing on the wrong stats. Let’s set it straight once and for all.
The report is chock full of massive percentage increases, like that foreclosure filings in Stockton, CA are up 465% from the third quarter of 2006. Now I realize that in a small market, if just a few houses go into foreclosure, then that makes the percentage increase huge (yes, I did attend 5th grade math class). There are, according to the report, 4,409 properties with foreclosure filings on them in Stockton, far fewer than the 16,079 properties with filings on them in Detroit.
Still, Stockton posts a higher foreclosure “rate” than Detroit, because of its size. That is, there is one foreclosure filing for every 31 households in Stockton, versus one in 33 households in Detroit, again, I reiterate, because of the size. The percentage increase for Detroit over last year is a mere 93%. Why? Because things there were pretty bad last year as well.