New York City Foreclosures—It’s Not All Bad

We had a chance to parse the third-quarter foreclosure report from PropertyShark.com. It showed an 8.55 percent increase from the second quarter in new residential foreclosures in New York City–and a 64.24 percent jump from the third quarter of 2006. Grim statistics, indeed.

Well, not exactly.

In Manhattan, the number of new foreclosures dropped. It declined slightly, from 35 in the second quarter to 30 in the third; and, of the 11 quarters going back to early 2005, the third quarter 2007 total was one of the lowest.

Also, the number of new foreclosures in the third quarter represents barely one-fifth of one-tenth of 1 percent of New York City homes. Got that? It's 698 foreclosures divided by the more than 3 million city households. So, while foreclosures were up in the city–the Bronx and Staten Island had the greatest increases–they are relatively uncommon still.

Look at the nation's second-largest city: The PropertyShark report showed a 40 percent quarterly increase in new foreclosures in Los Angeles. These involved more than 5,300 homes–or about seven and a half times the number in New York.