Foreclosure Rates in the U.S. Rise by 5% Annually in July

According to the latest data from ATTOM’s July 2023 U.S. Foreclosure Market Report, there were a total of 31,877 properties across the United States with foreclosure filings, encompassing default notices, scheduled auctions, or bank repossessions. While this figure marked a 9 percent decrease from the previous month, it represented a 5 percent increase compared to the same period last year.

Rob Barber, CEO at ATTOM, commented on the findings, stating, “The slight monthly decline in foreclosure filings we are seeing is yet another sign of a rebounding housing market.” He emphasized that with home prices on the rise, homeowners now have more financial resources at their disposal, offering them additional avenues to avoid foreclosure.

However, Barber also cautioned that the dynamic nature of the U.S. housing market means that various factors could influence its trajectory in the coming months, potentially leading to either continued improvement or a reversal of fortunes.

In July 2023, the foreclosure landscape in the United States revealed varying rates across different states and metropolitan areas. Nationwide, approximately one in every 4,380 housing units experienced a foreclosure filing during this period.

States with the highest foreclosure rates included Maryland, where one in every 2,071 housing units had a foreclosure filing, followed by New Jersey (one in every 2,335 housing units) and Delaware (one in every 2,343 housing units). Other states with notable foreclosure rates were Illinois (one in every 2,430 housing units) and South Carolina (one in every 2,511 housing units).

Delving into metropolitan areas, among the 223 analyzed with a population exceeding 200,000, several locales stood out for their high foreclosure rates. Fayetteville, NC, topped the list with one in every 1,367 housing units experiencing a foreclosure filing.

Atlantic City, NJ, followed closely with one in every 1,708 housing units, while Columbia, SC, reported one in every 1,747 housing units. Trenton, NJ, and Cleveland, OH, rounded out the top five with respective rates of one in every 1,870 and 1,957 housing units.

Furthermore, major metropolitan areas with populations surpassing 1 million also faced significant foreclosure challenges. Baltimore, MD, led this category with one in every 1,991 housing units experiencing foreclosure filings.

Las Vegas, NV, and Jacksonville, FL, followed closely with rates of one in every 2,098 and 2,243 housing units, respectively. Philadelphia, PA, also featured prominently, with one in every 2,273 housing units encountering foreclosure filings during July 2023.

In July 2023, the U.S. experienced a notable decrease in foreclosure starts, reflecting a positive trend in the housing market. Lenders initiated the foreclosure process on 21,020 properties across the nation during this period, marking a 12 percent decline from the previous month and a 2 percent decrease from the same period last year.

Several states witnessed substantial monthly declines in foreclosure starts, with notable reductions observed in states with 10 or more foreclosure starts in July 2023. Hawaii led the pack with a remarkable 51 percent decrease, followed by New Hampshire (down 45 percent), Idaho (down 43 percent), Arkansas (down 40 percent), and Alabama (down 38 percent).

Examining major metropolitan areas with populations exceeding 1 million, significant monthly declines in foreclosure starts were evident in various regions. Salt Lake City, UT, experienced the most substantial reduction, with foreclosure starts declining by an impressive 63 percent.

Honolulu, HI, followed closely with a 53 percent decrease, while Kansas City, MO, reported a notable decline of 46 percent. Rochester, NY, and Birmingham, AL, also saw substantial reductions, with foreclosure starts decreasing by 43 percent and 41 percent, respectively, in July 2023.

Foreclosure completions, represented by lenders repossessing properties through completed foreclosures (REOs), continued to rise both on a monthly and annual basis in July 2023, indicating ongoing challenges in the housing market. A total of 3,332 U.S. properties were repossessed by lenders through completed foreclosures during this period, reflecting a 4 percent increase from the previous month and a 9 percent rise from the same period last year.

Several states reported the highest number of REOs in July 2023, with Illinois leading the pack at 355 REOs. Pennsylvania followed closely with 230 REOs, while California, Michigan, and Texas each had 217, 200, and 200 REOs, respectively.

Among major metropolitan statistical areas (MSAs) with populations exceeding 1 million, specific regions observed a significant number of REOs in July 2023. Chicago, IL, topped the list with 233 REOs, followed by New York, NY, with 148 REOs. St. Louis, MO, reported 104 REOs, while Baltimore, MD, and Philadelphia, PA, had 82 and 80 REOs, respectively, during the same period.

Clare Trapasso
Clare Trapasso
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