REAL ESTATE NEWS

Banks foreclosed on 17% fewer properties in the first half of 2024 compared to the same period in 2023, and foreclosure filings in the U.S. were down 4.4% on the same basis. Foreclosure starts were also down 3%, according to ATTOM's Midyear 2024 U.S. Foreclosure Market Report. But it's not clear whether this is the start of a trend or just a hiatus.

On another positive note, there was a drop in foreclosure activity in the second quarter of 2024 compared to the first quarter, and an 8% drop compared to the same period in the previous year in 79 major markets. That brought the number of foreclosure filings down to 89,446. In addition, second quarter foreclosure activity was below pre-recession averages in 177 out 224 (79 percent) metropolitan statistical areas with a population of at least 200,000," the report found.

"The national foreclosure activity total in Q2 2024 was 68 percent below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007," it stated.

There was also a 3.5% dip to 130,369 in the number of properties starting the foreclosure process in the first half of 2024 compared to 2023 – reaching a level 32% below the same period in 2020.

But it's too early to relax and claim the market is returning to normal. "These shifts could suggest a potential stabilization in the housing market; however, monitoring these evolving patterns remains crucial to understanding the full impact on the real estate sector," said CEO Rob Barber.

There were 177,431 foreclosure filings in the first half of 2024. While that was down from 1H2023, it was up 7.8% compared to 2022. And it still meant that one in every 794 housing units was affected. Foreclosure filings include default notices, scheduled auctions or bank repossessions.

The states with the biggest increases in foreclosure activity were South Dakota – where it almost doubled rising 93%, North Dakota, Kentucky, Massachusetts, and Idaho. However, the 10 states with the highest foreclosure rates were New Jersey, Illinois, Florida, Nevada, South Carolina, Maryland, Connecticut, Delaware, Ohio, and Indiana.

The metros with populations of more than 200,000 with the highest foreclosure rates included three in Florida — Lakeland, Jacksonville and Orlando – as well as Columbia, SC, Atlantic City, NJ, Cleveland, OH, Spartanburg, SC, Bakersfield, CA, Elkhart, IN, and Chicago, IL.

By state, the highest number of foreclosure starts in the first half were in Texas, followed by Florida, California, New York and Illinois. States that led in the number of repossessions were California, Pennsylvania, Illinois, Michigan, and Texas.

By metro, the worst affected with foreclosures above pre-recession levels in the second quarter were Honolulu, Richmond, Baltimore, Virginia Beach, Albany, NY, and Montgomery.

The report also revealed that it took 11% more time to complete the home foreclosure process in the second quarter compared to the first, with an average of 815 days. However, that was 33% faster than in 2Q2023. The slowest average processes were in Louisiana – where it took 3,686 days — Hawaii, New York, Geogia, and Nevada – 1,852 days. The swiftest paths to completion were in New Hampshire – just 82 days – Texas, Minnesota, Oregon, and Montana – 212 days.

Source: GlobeSt/ALM