As the housing economy slowly rebounds, the number of homes in foreclosure are also declining. According to data recorded by real estate website Realtytrac.com, 1.8 million homes were foreclosed in 2012. However, this rate was 3.6 less than the homes foreclosed in 2010 and 2.7 percent less than the number of homes foreclosed in 2011.
MarketWatch compiled a list of states that have most number of homes in foreclosure. The website used RealtyTrac's data and prevailing unemployment rates to aggregate the list.
1. Florida: Florida witnessed the highest number of home foreclosures with a 3.11 percent foreclosing rate in 2012. Throughout the year, one in every 32 homes was in foreclosure pushing the foreclosing activity to rise to 52 percent. However, rates were 40 percent lower than that of 2010.
2. Nevada: Nevada has a 2.70 percent foreclosure rate. Nevada had the highest consecutive foreclosure rate for five years before lowering down in 2011. In 2012, foreclosure activity dropped by 56.6 percent from the rates of 2011. However, the rates are still high in the state with increased unemployment percentage as well. Home prices in the state are expected to fall by 5.5 percent.
3. Arizona: Arizona was right behind 2.69 percent foreclosure rate in the state. Despite the 12.7 percent increase in home prices in the second quarter of 2012, the state's home prices remained lower than 45.1 percent. Foreclosure activity also fell by 32.9 percent but the low home prices dragged the state into the current foreclosing rate position.
4. Georgia and Illinois: Georgia and Illinois tied at the fourth position recording 2.58 percent of foreclosing activity in each state. While Georgia's home prices declined by 12.3 percent throughout mid 2011-12, Illinois was the hardest hit state recording more than 30 percent decline in home prices throughout the recession, starting 2007.
5. California: California's foreclosure rate in 2012 was recorded at 2.33 percent. Though home prices were the fourth lowest in the state throughout the recession, prices rebound by 7.3 percent in the second quarter of 2012 making it the third highest state to record increased home prices. However, the state also ranks third in unemployment with a 9.8 percent rate.
Find the complete list of homes in foreclosure at MarketWatch.
