Residential Real Estate News
U.S. Property Foreclosures Dip in April
Based on ATTOM's newly released April 2023 U.S. Foreclosure Market Report, there were a total of 32,977 U.S. properties with foreclosure filings -- default notices, scheduled auctions or bank repossessions -- down 10 percent from a month ago but up 8 percent from a year ago.
Illinois, Maryland, and New Jersey post highest foreclosure rates
Nationwide one in every 4,234 housing units had a foreclosure filing in April 2023. States with the highest foreclosure rates were Illinois (one in every 2,221 housing units with a foreclosure filing); Maryland (one in every 2,283 housing units); New Jersey (one in every 2,334 housing units); South Carolina (one in every 2,495 housing units); and Delaware (one in every 2,603 housing units).
Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2023 were Atlantic City, NJ (one in every 1,356 housing units with a foreclosure filing); Cleveland, OH (one in every 1,580 housing units); Lakeland, FL (one in every 1,649 housing units); Columbia, SC (one in every 1,651 housing units); and Chicago, IL (one in every 1,950 housing units).
"Foreclosure activity continues to stabilize and even correct itself in 2023, with April showing a 10 percent decrease in overall activity after a 20 percent increase last month," said Rob Barber, chief executive officer at ATTOM. "While there is no apparent indication of a continued decline in the number of foreclosures, it's important to note that the month of April typically exhibits a recurring trend of decreased activity. However, this trend underscores the significance of monitoring foreclosure rates and identifying any potential market shifts or trends."
Among those metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April 2023, aside from Cleveland, OH and Chicago, IL, included: Riverside, CA (one in every 2,046 housing units); Philadelphia, PA (one in every 2,079 housing units); and Jacksonville, FL (one in every 2,091 housing units).
Foreclosure starts decline 7 percent from last month
Lenders started the foreclosure process on 22,455 U.S. properties in April 2023, down 7 percent from last month and up only 1 percent from a year ago.
Counter to the national trend, states that had at least 100 foreclosure starts in April 2023 and saw the greatest monthly increases included: Maryland (up 55 percent); New Mexico (up 55 percent); Iowa (up 29 percent); Utah (up 13 percent); and Florida (up 12 percent).
Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in April 2023 included: New York, NY (1,711 foreclosure starts); Chicago, IL (1,153 foreclosure starts); Miami, FL (846 foreclosure starts); Los Angeles, CA (829 foreclosure starts); and Philadelphia, PA (747 foreclosure starts).
Foreclosure completions decrease 39 percent monthly
Lenders repossessed 2,919 U.S. properties through completed foreclosures (REOs) in April 2023, down 39 percent from last month but up 3 percent from last year.
Those states that had the greatest number of REOs in April 2023 included: Illinois (334 REOs); Pennsylvania (218 REOs); New York (199 REOs); Texas (184 REOs); and California (171 REOs).
Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of REOs in April 2023 included: Chicago, IL (259 REOs); New York, NY (165 REOs); Philadelphia, PA (128 REOs); St. Louis, MO (54 REOs); and Detroit, MI (52 REOs).
