Apr 29 2008
The 80/20 Rule Applies To Foreclosures
RealtyTrac released Q1 2008 foreclosure statistics and the data follows an interesting statistical phenomenon most commonly known as the “80/20 Rule”.
The 80/20 Rule states that 80 percent of the effects come from 20 percent of the causes.
In this case, 80 percent of bank repossessions in the first three months of 2008 came from 20 percent of the states in the union.
Accounting for 156,463 repossessed homes nationwide:
- California (40,023 homes)
- Texas (14,935 homes)
- Michigan (12,016 homes)
- Ohio (10,299 homes)
- Florida (10,185 homes)
- Georgia (8,265 homes)
- Arizona (7,956 homes)
- Colorado (7,022 homes)
- Tennessee (4,533 homes)
- Indiana (4,446 homes)
- Illinois (4,216 homes)
Overall, 0.55 percent of homes were repossessed by banks in the first quarter.
It’s good to see that Virginia is not on this Top 10 … or Top 11 list. Although, we weren’t that far down, coming in at number 14 with 3,639 foreclosed homes. That’s a rate of 1 foreclosed home for every 246 households.
