Houston foreclosures increase sharply in 2010

Although the Houston real estate market largely avoided the waves of foreclosures across the country in recent years, a report from RealtyTrac shows that it hasn't been able to escape them completely.

According to the report, foreclosure activity in the Houston-Sugarland-Baytown region increased 29 percent from 2009 to 2010, the largest increase of any of the country's largest cities. However, the 35,000 foreclosures during the year still ranked it 104th out of 206 cities in terms of the overall percentage of homes in the area.

Nationwide, foreclosures increased just 1.7 percent compared to 2009, fueled by high jobless rates across much of the country.

"Foreclosures became more widespread in 2010 as high unemployment drove activity up in 72 percent of the nation’s metro areas — many of which were relatively insulated from the initial foreclosure tsunami," said James J. Saccacio, chief executive officer of RealtyTrac.

However, continued interest in the discounted properties by local buyers should continue to drive down the supply. The Houston Association of Realtors said that in December, former foreclosures made up roughly 20 percent of all home sales in the city.