The number of new foreclosures in California soared 19 percent last month, renewing worries that the state is sitting atop a real estate bubble that is about to burst.
But with one new foreclosure for every 2,773 households, California’s default rate still remained less than two-thirds the national average, according to RealtyTrac Inc.
“This is the first significant increase in Los Angeles foreclosure rates that we’ve seen in the past six months,” said James Saccacio, RealtyTrac chief executive. “Whether this is the beginning of a trend or a one-month spike is something we will be following closely.”
Nationwide, the number of properties entering foreclosure last month rose to 67,024 from 62,432 in May. Texas, Florida, California, Ohio and Illinois had the most new foreclosures and accounted for more than half the nation’s total with 37,249.
The overall increase resulted in the highest number of new foreclosures reported in any one month this year and resulted in a 7.4 percent increase in the nation’s default rate. Nationally, one new foreclosure was filed for every 1,726 households.
Still, in its report, Saccacio said the rise isn’t necessarily “cause for alarm, but it’s certainly an indication that foreclosures bear watching.”