Stockton foreclosure listings continue to grow because of the high level of unemployment in the area. Although the pace of foreclosures slowed down slightly in the July to September quarter compared to the same period last year, the rate of foreclosure in the area still increased by nearly 2 percent from the previous three-month period.
In San Joaquin County, where Stockton is located, the unemployment rate hit 15.5 percent in September, with more than 47,000 losing their jobs in September out of a total workforce of 304,600.
According to the Employment Development Department of California, the employment sectors that laid off the highest number of workers in September were the construction, transportation, warehousing and limited-service restaurant sectors.
A lot of federal government workers were also laid off, with the Defense Department the only government agency that did not terminate employees in September. The EDD said that nearly 20 percent of workers in the building and contracting sector were laid off in September.
Based on a regional economics study released by the nonprofit Great Valley Center for the Central Valley, where San Joaquin is located, the valley is very different geographically, culturally and economically from other regions in California. Although the Central Valley tops other California regions in agricultural production, the valley lags the state based on income.
The unique challenges faced by the region have been contributing to the still high number of properties entering Stockton foreclosure listings. The nonprofit report said that many areas of the region have high population growth rates, but also high unemployment rates. The region also provides some of the lowest wage rates and has the highest income disparities in the state and in the U.S.
In 2007, the per capita income of the Central Valley was only around $29,000, which is among the nation’s lowest and which is 29 percent lower than the average in California. The analysts contended that if the valley were a U.S. state, it would be 48th among the states based on per capita income.
In terms of housing, new building permits dropped by a staggering 404 percent in the valley last year compared to 2005, with the northern San Joaquin area suffering the sharpest drop of 853 percent.
Foreclosures hit the valley hard, with north San Joaquin again suffering the most with the highest rate of foreclosure in the region.
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