Detroit metro area posts highest foreclosure rate in U.S.

"As expected, the number of properties entering some stage of foreclosure in 2007 was up in the vast majority of the nation's 100 largest metro areas, with 86 metros reporting increases from 2006," James J. Saccacio, chief executive officer of RealtyTrac said. "Most of the metro areas with the highest foreclosure rates were either cities like Stockton and Las Vegas, which experienced meteoric growth and unsustainable price appreciation over the past few years, or cities like Detroit, which are undergoing a more widespread economic downturn along with higher unemployment rates."

Fifteen of the metro areas with the top 20 metro foreclosure rates were located in four states: California with six, Ohio with four, Florida with three and Michigan with two.

Worst housing slump in generation

Economist Steve Affinito told BloggingStocks Wednesday the data confirms the worst housing conditions in the U.S.'s metropolitan areas in more than 20 years.

"The data reinforces that the U.S. housing sector remains in a deep recession, particularly in those metro areas that have suffered job losses or sluggish economic growth in 2007," Affinito said. "Based on the data released today, we're likely to see home prices continue to fall through 2008 and well into 2009 in most regions of the country."

ReatlyTrac's household numbers are based on the U.S. Census Bureau's 2005 estimates of total housing units. Foreclosure filings include foreclosure-related documents in all three phases of foreclosure: default -- notice of default and lis pendens; auction -- notice of trustee sale and notice of foreclosure sale; and real estate owned, or r.e.o. properties (that have been foreclosed on and repurchased by a bank).