RealtyTrac is a major online presence for foreclosure properties throughout the U.S. On July 15^th, they released their Midyear 2010 U.S. Foreclosure Market Report which showed that 1.65 million properties across the country received foreclosure filings including “default notices, auction sale notices and bank repossessions” in the first six months of 2010.

While this number is actually a five percent decrease compared to the last six months, it’s eight percent higher than the first six months of 2009.

According to the report, “1.28 percent of all housing units (one in 78) received at least one foreclosure filing in the first half of the year.”

As you may have guessed, California tops the list in total number of foreclosures with over 340,000. This equates to one in every 39 of California’s housing units receiving a foreclosure notice over the past six months.

The only silver lining for California is that staggering total is actually almost 13 percent fewer than the number experienced in 2009’s first half, however, these numbers are still unsettling as they are higher than the nation’s ever seen overall.

Additionally, almost every other state’s foreclosure amounts increased substantially to suggest the national industry is far from recovery.

Florida and Arizona shared California’s rank with the next two highest total foreclosures, but Nevada took the cake in terms of percentages. 5 percent of their housing units, or one in every 17, received a foreclosure notice in the past six months. Arizona came in second with one in every thirty.

Some inferences can be made from these statistics. Tourism seems to be related to these numbers as California, Arizona, Florida and Nevada have some of the highest tourism rates in the country, and it’s widely accepted that tourism falters along with a down economy.

Perhaps the rate of second-home defaulting is increasing in the poor economy. Many buyers who purchased at the pinnacle of the inflated market are definitely attracted to their defaulting or short sale options in order to cut their losses on high mortgages at the expense of their credit score.

It appears the market is in for more hurdles in the coming year, as the predominant category of listings are foreclosures and short sales and numbers suggest they will continue to be for quite some time.

If you would like to sell your house in this market contact CalStar Realty and Mortgage.