Hit by the recession the real estate sector is showing signs of stabilizing as foreclosure rates are dipping. The January numbers for foreclosures show a dip of 10% as compared to last month but recorded an increase of 15% as compared to corresponding month previous year.

The unemployment resulted in higher default number which led to a jump of 31 percent in bank seizures from last year.

RealtyTrac CEO James J. Saccacio said in a statement, "January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10 percent jump in January".

The data recorded in different states showed a varying pattern but three states California, Florida and Arizona posted the highest state numbers of properties receiving foreclosure filings in January. Illinois & Michigan bagged other two positions in top five foreclosure chart.

Economists predict the foreclosure rate to go up as higher number of unemployed homeowners will add up to mortgage defaulters list. The unemployed number fell to 9.7% in January but still sizeable population of homeowners is in risk of default on their loan payments.