The U.S. financial crisis and economic recession was closely associated with rising unemployment, plunging residential property values, and a large wave of foreclosures that swept throughout the country; with Florida being especially hard hit. Even though the recession was declared to have ended in June 2009 by the National Bureau of Economic Research (NBER), foreclosures continued at a relatively high level throughout most of 2010. Since the last quarter of 2010, however, foreclosure filings have declined significantly.
Business cycle peaks and troughs are officially declared by the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) and typically take a long period of time to declare. For example, the December 2007 peak was announced December 1, 2008 and the November 2001 trough was announced July 17, 2003. For additional information on business cycle expansions and contractions go to http://www.nber.org/cycles.html.
Pinellas County Foreclosures
The impact of the financial crisis and economic recession on Pinellas County households, particularly families with children, resulted in foreclosure case filings quadrupling between 2006 and 2009 (see Chart 1) - NOTE: not all foreclosure case filings result in an actual sale. The rate of growth of foreclosure case filings slowed substantially in 2009 and in 2010 the number of foreclosures declined 29% from 2009, the first decline since 2006. In February 2011, the latest month available, foreclosure filings declined 72% from a year ago (see Chart 2).
- During the 2007-2010 period, total foreclosure filings accounted for approximately 17% of Pinellas County’s estimated 280,000 owner-occupied housing units (owner-occupied housing units are estimated to account for 70% of total occupied housing units).
- Based on the American Community Survey for 2007-2009, approximately 21% of owner-occupied housing units include families with related children under 18.