August Foreclosures in CT Drop

Foreclosures in Connecticut dropped dramatically in August. But there’s no clear trend in the state’s figures over the last few months. WNPR’s Harriet Jones reports.

According to new figures from foreclosure data firm RealtyTrac, filings were down 22% in the state from the number in July. Connecticut dropped 9 places on the national ranking of states by foreclosure rates to 32nd place. The state bucked the overall trend which saw foreclosures around the country up 4% in August.

But foreclosures have been fluctuating in the state in recent months. Filings dropped in May and June, but picked up again substantially in July. Economist Don Klepper Smith of Datacore Partners says monthly figures are often volatile.

“But I think what can be said is that the housing fundamentals are beginning to firm up a little bit. We’re seeing some traction in the labor markets, we’ve gained 12,000 new jobs, which is a move in the right direction. In terms of consumer spending power, nominal income is up about 1.8%. The confidence numbers are looking a little bit better. The housing market—to get meaningful traction we need some traction in the labor markets, and we’re just starting to see signs of that now.”

Connecticut’s filing rate in August translates to one in every 804 homes being in foreclosure. That compares to a national rate of one in 381. Nevada has the worst rate in the nation with one in every 84 houses having a foreclosure filing against it.

For WNPR, I'm Harriet Jones.