Thu, 11 April 2024 | housing
In the latest report released by ATTOM, an aggregator of land, property, and real estate data, the U.S. foreclosure market appears to be navigating through a period of mild fluctuations. According to the Q1 2024 U.S. Foreclosure Market Report, the nation saw a total of 95,349 properties with foreclosure filings during the first quarter of the year. This represents a slight increase of 3 percent from the last quarter but reveals a minor decrease of less than 1 percent compared to the same period last year.
The data for March 2024 indicates a total of 32,878 U.S. properties faced foreclosure filings, marking a marginal drop from the previous month and a more substantial 10 percent decrease from March 2023. Rob Barber, CEO at ATTOM, interprets these figures as signs of a "market in transition," noting minor upticks in filings and starts juxtaposed against a noteworthy decline in REO (Real Estate Owned) properties. He comments, "While foreclosures remain relatively stable, we're closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market."
Nationwide Trends
The report highlights an increase in foreclosure starts across the country, with 67,657 properties beginning the foreclosure process in Q1 2024. This is up by 2 percent from the previous quarter and 4 percent from the same timeframe last year. States such as New Hampshire, Illinois, Florida, Rhode Island, and Nevada saw the most significant quarterly increases in foreclosure starts, indicating localized pockets of distress within the national landscape.
Particularly affected metropolitan areas with a population of 200,000 or more, including New York, Houston, Chicago, Los Angeles, and Miami, experienced the highest numbers of foreclosure starts in the first quarter of 2024.
Foreclosure Rates by State
Delaware, New Jersey, and South Carolina topped the list of states with the highest foreclosure rates, emphasizing the regional disparities in how different areas are coping with financial stress on homeowners. Metropolitan statistical areas like Columbia and Spartanburg in South Carolina, Lakeland in Florida, Atlantic City in New Jersey, and Cleveland in Ohio were among those with the highest foreclosure rates in Q1 2024.
Historical Context and Bank Repossessions
The data also reveals a 7 percent increase in lender repossessions (REOs) from the last quarter, despite a 20 percent decrease from the previous year. Michigan, California, Pennsylvania, Illinois, and Texas reported the highest numbers of REOs in Q1 2024.
In historical context, the average time to foreclose has seen a 2 percent increase from the previous quarter, standing at an average of 736 days, yet marking a significant 20 percent decrease from the same period last year. This trend indicates a gradual but steady improvement in processing times since the disruptions witnessed in mid-2020.
March 2024 Insights
Delving deeper into the data for March 2024, notable findings include a nationwide ratio of one foreclosure filing for every 4,286 properties. Illinois, Connecticut, New Jersey, Florida, and South Carolina faced the highest foreclosure rates. March also saw 23,312 properties initiating the foreclosure process, suggesting a continuation of the subtle fluctuations observed in the broader quarterly data.
Overall, while the Q1 2024 report from ATTOM paints a picture of a U.S. foreclosure market characterized by slight variances, it also highlights a degree of resilience among homeowners buoyed by significant equity. However, the variations in foreclosure rates and timelines across states underscore the uneven recovery and challenges still faced by certain regions.