Foreclosures up 93% in 1st quarter
Foreclosures in Jackson County were up 93 percent in the first quarter of 2008 with a record of 220 foreclosures for the period. That compares to 114 foreclosures the first quarter of 2007 and 109 in 2006.
The number also topped the fourth quarter of 2007 which had 162 foreclosures. For all of 2007, there were 548 foreclosures in Jackson County.
The only bright spot in the numbers was the fall of foreclosures in March to 45 for the month, just slightly above last year’s monthly total of 41. Some economists have warned, however, that nationwide all of 2008 will see a large number of foreclosures due to the sub-prime mortgage crisis.
Frank Norton Jr. of The Norton Agency isn’t surprised by Jackson County’s foreclosure rate. His Gainesville-based real estate and insurance company closely monitors development and real estate trends in Northeast Georgia.
“We’ve been expecting it for some time,” Norton said of the higher foreclosure rates. “The pain is not over. However, we do believe the market has hit bottom. But more houses are selling everyday.”
Norton said the region is experiencing two types of foreclosures — those of banks foreclosing on properties from builders and developers, and a few from subprime and borrower foreclosuers.
The industry of banking and mortgage lending, however, is “cleaning itself up,” Norton said. He predicts that Jackson County will see rising foreclosure rates through the end of the fourth quarter of 2008. By the first quarter of 2009, the county’s foreclosure rate may be decreasing.
Norton foresees individual foreclosures in Jackson County reaching their height this summer, when mortgage rates are adjusted. Some federal mortgage assistance programs are helping, he added.
“We’re seeing more lenders negotiating with the developer-builder or the individual, rather than take (the property) back,” Norton said.
Meanwhile, Norton said he’s preaching the “unbelievable” opportunities available in the market. Individual homeowners may get their best deals between now and the end of summer, when product inventory starts to shrink, he added.
The demand for rental properties is also expected to rise in Jackson County, Norton said. While homeowners may not have been able to afford rising mortgage rates, they can still afford rental rates, he explained.
