Tuesday, August 04, 2009

Foreclosures Stabilize In California, Florida, and Arizona

There is more hope that the worst of the recession is over as new evidence shows foreclosures in California, Arizona, and Florida are finally stabilizing. The three states were among those hit hardest by the real estate crisis, which makes their rebound all the more exciting. Check out the following snippet from an Associated Press story on this new data.

Even as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust -- California, Arizona and Florida -- stabilized in June, offering hope that the worst of the real estate crisis is over, according to The Associated Press' monthly analysis of economic stress in more than 3,100 U.S. counties.

The latest results of AP's Economic Stress Index show foreclosure and bankruptcy rates held steady from May in some states. Yet mounting unemployment is hampering an economic recovery in some regions, especially the Southeast and industrial Midwest.

The AP calculates a score from 1 to 100 based on each county's unemployment, foreclosure and bankruptcy rates. The higher the score, the higher the economic stress. The average county's Stress score rose to 10.6 in June, up from 10 in May, mainly because of rising unemployment.

In June 2008, the average county's Stress score was 6.7. The pain was lower then because the economy was still expanding. In fact, the second quarter of 2008 was the last time the economy grew.

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