Foreclosures Dropping Nationwide. Is Your Local Market an Anomaly?

Nationwide, foreclosures have been steadily decreasing since 2010. However there are a few isolated markets that have been seeing a recent increase in foreclosures and foreclosure starts. This is not necessarily baffling.

It’s no coincidence that the majority of these locals are the same ones that have experienced a faster-than-average rise in home prices. Most are located on the east coast, Denver, CO being the exception. Lender confidence is also playing a part, as you’ll see below in a quote from Todd Teta of ATTOM Data Solutions.

Four of the top 5 regions undergoing a shift in foreclosures are cities in Florida. Only one city out of 10 experiencing the highest foreclosure rates, Rockford, Ill., is outside of the East Coast.

Phoenix Business Journal references CoreLogic’s LPI foreclosure and delinquency tracking, in their recent report stating that Arizona foreclosures are lower than the national average, both statewide and in all major metro areas. Bank owned properties on the market in Arizona are few and far between.

Fewer Foreclosures Nationwide, but Local Market Outliers Surface

By RISMedia Staff

In 5 Major Markets, Foreclosure Starts Tick Up

In the first half of 2010, foreclosures peaked at 1.6 million-plus properties. In the recovery since, foreclosures have plummeted 82 percent, according to a new report.

Photo Credit: ATTOM Data Solutions

In the first half of 2019, foreclosures hung on over 295,000 properties, according to ATTOM Data Solutions findings, released today—an 18-percent drop from last year. Approximately 177,000 began the foreclosure process in that time, defined as “foreclosure starts,” falling 8 percent year-over-year.

At odds with the overall trend, foreclosures increased in 16 percent of the largest markets in the U.S., with Buffalo, N.Y., and four Florida markets seeing spikes: Jacksonville, Miami, Orlando and Tampa-St. Petersburg.

Notably, Jacksonville also claimed a considerable foreclosure rate, at 0.54 percent of properties. The highest? New Jersey, with foreclosures on 0.54 percent of properties statewide, and home to two major markets in similar straits: Atlantic City, with a foreclosure rate of 0.92 percent; and Trenton, at 0.52 percent.

Across 16 states—and in 42 percent of the largest markets—foreclosure initiations picked up, concentrated in Southern states. In Mississippi, foreclosure starts surged 56 percent year-over-year, and in Florida, rose 28 percent.

“Our midyear 2019 foreclosure activity helps to show an overall view on how foreclosure activity is trending downward,” says Todd Teta, ATTOM Data Solutions chief product officer. “Of course, you still have pockets across the nation where foreclosure activity is seeing some flare-ups.”

Are the blips cause for concern? According to Teta, as prices remain on the rise, foreclosure starts warrant watching.

“Foreclosure starts is a good indication of markets to watch,” Teta says. “Affordability definitely plays a factor in why some areas across the nation are seeing an uptick in foreclosure starts. The fact that median home sales prices are reaching new levels in Q2 2019, mortgage rates are remaining low and job growth is still strong, lenders are becoming more aggressive with their payment collection because they are confident in getting a decent return in this hot housing market.”

Foreclosure Increases – Markets to Watch
1. Buffalo, N.Y. (+33%)
2. Orlando, Fla. (+32%)
3. Jacksonville, Fla. (+18%)
4. Miami, Fla. (+7%)
5. Tampa-St. Petersburg, Fla. (+5%)

Foreclosure Starts – Markets to Watch
1. Miami, Fla. (+32%)
2. Tampa-St. Petersburg, Fla. (+18%)
3. Atlanta, Ga. (+16%)
4. Washington, D.C. (+8%)
5. Denver, Colo. (+6%)

Foreclosure Rates (Metro)
1. Atlantic City, N.J. (0.92%)
2. Jacksonville, Fla. (0.54%)
3. Trenton, N.J. (0.52%)
4. Rockford, Ill. (0.51%)
5. Lakeland, Fla. (0.51%)
6. Columbia, S.C. (0.49%)
7. Ocala, Fla. (0.49%)
8. Philadelphia, Pa. (0.48%)
9. Fayetteville, N.C. (0.47%)
10. Baltimore, Md. (0.44%)

Foreclosure Rates (State)
1. New Jersey (0.54%)
2. Delaware (0.46%)
3. Maryland (0.43%)
4. Florida (0.39%)
5. Illinois (0.38%)
6. South Carolina (0.33%)
7. Connecticut (0.32%)
8. Ohio (0.3%)
9. Nevada (0.26%)
10. New Mexico (0.26%)