Austin Real Estate Blog

There is a troubling rise in home foreclosures in the Travis County area, causing some to believe the Central Texas region is not, after all, to be shielded from the real estate crisis hitting the rest of the nation.

In the first half of 2008, one out of every 133 homes in Travis County has succumbed to foreclosure proceedings, compared with the 2001 figures which show one in every 265 homes was foreclosed on. Over in Williamson County, one of every 95 homes went under foreclosure - another troubling rise when compared to one in 225 homes in 2001.

Some contend that the rise in foreclosures is simply due to an increased volume of homes in the area, and while “that is certainly one of the components’, other factors are involved, including the sub-prime mortgage scandal and heretofore lenience toward potential mortgagees’ financial situations. So says George Roddy Sr., who is president of Foreclosure Listing Service Inc., an Addison based company which traces foreclosure trends in some Texas cities. According to Roddy, the people bearing the brunt of the foreclosure pains are those whose homes are valued at under $200,000. “79 percent of the homes posted [for foreclosure] during the first part of this year [are] valued at under $200,000″, he reports.

Yet, the higher end is beginning to feel the pinch as well. Houses valued between $300,000 and $500,000 came under foreclosure at a rise of 44 percent compared with 2007. Foreclosures on homes valued at between $500,000 and $1 million increased 22 percent and those over $1 million were up 18 percent.