Recent data by property data curator ATTOM has shed light on the dynamics of the U.S. foreclosure market in July 2023. The insights reflect both optimistic and cautious perspectives, demonstrating the continually evolving nature of the housing market. Let’s delve deeper.
Snapshot of the Foreclosure Numbers
– July 2023 saw 31,877 U.S. properties with foreclosure filings, marking a 9% decline from the previous month. However, when compared on an annual basis, there’s a 5% increase from last year.
– Rob Barber, CEO at ATTOM, highlighted this downward monthly trend as indicative of a more robust housing market. With home prices rising, homeowners are finding themselves in a better financial position, reducing the risk of foreclosures.
National and State-Wise Foreclosure Rates
– Nationally, in July 2023, one out of every 4,380 housing units experienced a foreclosure filing.
– Top 5 States with Highest Foreclosure Rates:
1. Maryland – One in every 2,071 housing units
2. New Jersey – One in every 2,335
3. Delaware – One in every 2,343
4. Illinois – One in every 2,430
5. South Carolina – One in every 2,511
Foreclosure Rates by Metropolitan Areas
For metropolitan areas boasting a population over 200,000, the ones hit hardest by foreclosures were:
1. Fayetteville, N.C. – One in every 1,367 housing units
2. Atlantic City, N.J. – One in every 1,708
3. Columbia, S.C. – One in every 1,747
4. Trenton, N.J. – One in every 1,870
5. Cleveland – One in every 1,957
In larger metro areas with populations exceeding 1 million:
1. Baltimore – One in every 1,991 housing units
2. Las Vegas – One in every 2,098
3. Jacksonville, Fla. – One in every 2,243
4. Philadelphia – One in every 2,273
Initiation and Completion of Foreclosures
– Lenders initiated the foreclosure process on 21,020 U.S. properties in July, marking a 12% decrease from June and a 2% drop year-over-year.
– Lenders repossessed 3,332 properties in July through completed foreclosures (REOs), indicating a rise of 4% from the previous month and 9% from the previous year.
States and Metro Areas Seeing Notable Changes
– Foreclosure Starts: States witnessing the most significant monthly drops in initiating foreclosures were Hawaii (down by 51%), New Hampshire (down 45%), Idaho (down 43%), Arkansas (down 40%), and Alabama (down 38%).
– Metropolitan Declines: The cities experiencing the steepest monthly declines in foreclosure starts included Salt Lake City (down 63%), Honolulu (down 53%), Kansas City, Mo. (down 46%), Rochester, N.Y. (down 43%), and Birmingham, Ala. (down 41%).
– REOs by State: The top states in terms of REOs were Illinois (355 REOs), Pennsylvania (230 REOs), California (217 REOs), Michigan (200 REOs), and Texas (200 REOs).
– REOs by Metropolitan Area: Leading cities by REOs were Chicago (233 REOs), New York (148 REOs), St. Louis (104 REOs), Baltimore (82 REOs), and Philadelphia (80 REOs).
In Conclusion
July’s foreclosure statistics present a mixed bag. While the numbers reflect a month-over-month decline, suggesting positive dynamics in the housing market, the year-over-year increase underscores the volatility and uncertainty in this space. Homeowners, real estate professionals, and investors must remain vigilant and informed to navigate the ever-shifting landscape effectively.