Beyond California: New Foreclosure Hot Spots

California and Florida have been the epicenters of foreclosure activity since the housing boom came to a screeching halt. Now, though, some new hot spots are emerging, giving the old standbys some company.

Metro areas like Boise City-Nampa, Idaho, and Provo-Orem, Utah, had the biggest year-over-year increases in foreclosure rates among the top 50 foreclosure areas for the third quarter, according to the latest market report from RealtyTrac, a foreclosure listing service. Boise City saw a 141% increase in foreclosure activity compared with the third quarter last year, while Provo’s foreclosures jumped nearly 120%. (Foreclosure activity rose 22.5% nationally in the third quarter, compared with a year ago.)

Rising unemployment in these areas is partly to blame for the rise of some newer foreclosure centers. These areas have been hard hit by jobless woes, says Rick Sharga, senior vice president of RealtyTrac. Typically, Sharga says, higher foreclosure activity is likely to follow a region’s unemployment growth.

Sharga also noted that this past quarter saw more foreclosure activity in so-called secondary markets, like Chico, Calif.; up almost 98% from third quarter 2008, it had the biggest year-over-year increase in California. The midsize city is about 100 miles north of Sacramento and had a 12.8% unemployment rate in August.

The news of shifts in foreclosure activity comes as August figures from the S&P/Case-Shiller Home Price Index indicate stabilization in housing is slowly taking hold. The Case-Shiller Home Price Index showed that the annual rate of decline of the 10-City and 20-City Composites improved compared to last month's reading. There have now been approximately seven months of improved readings in those figures, beginning in early 2009. The 10-city and 20-city index levels declined 10.6% and 11.3%, respectively, in August, compared with the same month last year. But while many of the markets remain lower vs. a year ago, the relative rate of decline has improved.

One factor that may have played into the recent demand is the federal tax credit for first-time home buyers. The credit expires on Nov. 30, though on Tuesday a deal was advancing in the Senate for a smaller credit with broader eligibility.

One mildly optimistic note from the latest foreclosure activity news: The third quarter saw the highest foreclosure activity nationally, “but it appears we’re not growing at as fast a rate as we have in previous quarters,” says RealtyTrac’s Sharga.

1. Las Vegas-Paradise, NV
2. Merced, CA
3. Cape Coral-Fort Myers, FL
4. Stockton, CA
5. Modesto, CA
6. Riverside-San Bernardino-Ontario, CA
7. Bakersfield, CA
8. Vallejo-Fairfield, CA
9. Reno-Sparks, NV
10. Port St. Lucie, FL
11. Orlando-Kissimmee, FL
12. Phoenix-Mesa-Scottsdale, AZ
13. Sacramento--Arden-Arcade--Roseville, CA
14. Miami-Fort Lauderdale-Pompano Beach, FL
15. Fresno, CA
16. Salinas, CA
17. Visalia-Porterville, CA
18. Lakeland, FL
19. Boise City-Nampa, ID
20. San Diego-Carlsbad-San Marcos, CA
21. Provo-Orem, UT
22. Oxnard-Thousand Oaks-Ventura, CA
23. Los Angeles-Long Beach-Santa Ana, CA
24. Naples-Marco Island, FL
25. Deltona-Daytona Beach-Ormond Beach, FL

Ranking based on percentage of housing units. Source: Realtytrac

For more details and foreclosure figures, click here.