Unemployment Drove Foreclosed Properties to Rise in Nevada

The metropolitan areas of Reno-Sparks in Nevada saw a sharp rise in the number of foreclosed properties in the first six months of this year. The quick rise of foreclosure-related activity in Reno-Sparks earned the area the 13th position among metropolitan areas nationwide with the highest number of repo homes.

Industry experts blamed the high unemployment rate on the rise of foreclosures in Reno-Sparks. During the period, 6,515 homeowners received foreclosure filings, including notices of default, trustee sales or actual bank home foreclosures. The total number of foreclosure filings for the first six months of this year represented an 89 percent increase compared with the first half of last year.

Industry experts said that several metropolitan areas across the country continue to experience an increase in foreclosure-related activities. However, the increase is very noticeable and fast in Reno-Sparks, prompting them to conclude that the housing market in the area will still experience more declines before it could get back to the normal cycle.

The rate of foreclosure filings in Reno-Sparks has surpassed the national rate. For the first half of this year, one out of 28 households in Reno-Sparks received at least one foreclosure filing. The rate was thrice higher than the national average, pushing Reno-Sparks to the top 20 metropolitan areas in the country with highest number of foreclosure properties. For the same period last year, Reno-Sparks was ranked 27th among 203 metropolitan areas surveyed.

Industry experts are one in saying that the fast acceleration of repossession-related activity in Reno-Sparks was due to a high unemployment rate. They explained that the housing market in Reno-Sparks was one of the severely affected areas of the foreclosure crisis. The housing market collapse combined with high unemployment rate left Reno-Sparks in a state of devastation.

Furthermore, industry experts said that for the first half of this year, many foreclosures across the country are driven by unemployment. They noted that areas that do not usually have a high number of foreclosed houses are now frontrunners in the foreclosure rate ranking due to the rapid rise of unemployment.

Statewide, one out of 16 or 6 percent of households in Nevada received a foreclosure filing, making the state the highest in the country in terms of foreclosure rate in the first six months of this year.

Foreclosure filings were made on 68,708 properties for the period, representing a 23 percent increase from the last half of 2008 and 61 percent higher from the first half of 2008.

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