Tampa among three metros where foreclosures are still rising

TAMPA It's no surprise that Tampa was among the top 20 metros with high foreclosure rates in 2010. But here's the eyebrow raiser: the area was one of just three of those metros to see an increase over the previous year.

That means the Tampa-St. Petersburg-Clearwater metro area won't likely see a slowdown in foreclosures any time soon, said Daren Blomquist, spokesman for Calif.-based RealtyTrac, which released the data Thursday.

"We're seeing some positives nationwide," Blomquist said. "But, unfortunately, Tampa is not one of the cities to have a decrease in 2010."

The Tampa area had 64,963 properties with a foreclosure filing - default notices, scheduled auctions and bank repossessions - in 2010. That's one for every 20 housing units and an increase of 4 percent from 2009.

Tampa ranked No. 17 among the 20 metros, ranked by high foreclosure rates. The worst foreclosure rate was in Las Vegas, which ranked No. 1. One out of every nine homes in that area received a filing during 2010.

Part of the reason filings are up, Blomquist said, is because lenders are finishing up the foreclosure process for some properties that have been lingering in the system. There was a 66 percent increase in bank repossessions in 2010, compared to 2009.

But the news isn't all bad. Working off foreclosure inventory is necessary before the real estate market can improve.

And, despite the increased foreclosures in the short-term, Moody's Economy.com is predicting 2011 will be a good year for Tampa's economy overall.

Foreclosure activity is expected to outpace 2010, said Chris Lafakis, who follows Tampa for Moody's. However, the Tampa area is expected to turn a corner during the third quarter.

During that time, prices are expected to fall 8 percent further. But Lafakis said the price drops won't be reflective of the economy. Tampa's economy is improving, and Lafakis said he expects Tampa's growth to exceed that of the nation.

But as lenders take back more homes in foreclosure, a larger number of home sales will be distressed sales. That's what's still dragging down prices, Lafakis said.

"The good news on that front is that we're almost there," he said. "It's been so long since I've told someone I predict a bottom this year."

In other good news for Tampa, Lafakis said people are moving to the area again because prices are more attractive and companies are hiring again.

"People were leaving the area during the recession, and now people are coming back at the same level," he said.

And that means an increase in housing demand, which means an increase in home building, he said.

"We're predicting an increase of 10,000 jobs in the construction industry this year," he said.

As banks sell foreclosed homes, housing demand could increase even more, he said.

The only other two cities with increases that joined Tampa on RealtyTrac's list were Deltona-Daytona Beach-Ormond Beach, Fla., which saw a 9 percent annual increase and Boise City-Nampa, Idaho, which a 3 percent increase.

California, Florida, Nevada and Arizona cities accounted for 19 of the top 20 metro foreclosure rates.

"Foreclosure floodwaters receded somewhat in 2010 in the nation's hardest-hit housing markets," said James J. Saccacio, chief executive officer of RealtyTrac. "Even so, foreclosure levels remained five to 10 times higher than historic norms in most of those hard-hit markets."

Cities that were among the first to experience an increase in foreclosures are seeing an improvement, Blomquist said.

"Even though foreclosures will increase this year overall, this year will also be the beginning of turning a corner," he said.