Foreclosures ticked up last year in what experts said was a housing market correction after years of volatility following the outbreak of COVID-19, according to the real estate data analysis firm ATTOM.
Foreclosure filings last year, including default notices, scheduled auctions and bank repossessions, jumped 10 percent compared to 2022 and were up 136 percent from 2021. But they were down nearly 30 percent compared to 2019, the year before COVID disrupted the housing market.
There were more than 357,000 homes in the foreclosure process in 2023, about 0.26 percent of all homes in the U.S., up slightly from a year ago. But these homes that found themselves entering this process were down from the 0.36 percent seen in 2019 and from what ATTOM says was a peak more than a decade ago with 2.23 percent of properties finding themselves in foreclosure activity.
"We see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility," ATTOM CEO Rob Barber said in a statement. "Our data suggests that while foreclosure activity may fluctuate, it's unlikely to approach the highs seen in the last decade."
A spokesperson at ATTOM told Newsweek in a follow-up email that if certain economic trends shift, foreclosures could rise.
"If we see home prices decline, this could potentially lead to negative equity. And if unemployment rates continue to rise, we may see more and more people not able to make their mortgage payments," said Jennifer von Pohlmann, a senior director of public relations at ATTOM.
Data from December showed that foreclosure filings fell 6 percent compared to the previous month and were down by 2 percent compared to the same time a year ago, according to ATTOM. The firm produces its analysis based on public records and foreclosure filings from more than 3,000 countries across the country, it said.
New Jersey, Illinois, Delaware, Maryland and Ohio registered the highest rates of foreclosures in 2023. Metropolitan areas that reported the most foreclosure activities included Atlantic City in New Jersey, Lakeland in Florida, Columbia in South Carolina and Fayetteville in North Carolina.
Barber suggested that the foreclosure activity in 2023 reflected economic trends of a housing market that is less predictable than it was during the pandemic.
"We foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape," he said. "This shift offers a silver lining—the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight."
ATTOM's spokesperson added that the trajectory of interest rates, which have been elevated since the Federal Reserve hiked rates to fight inflation, as well as home prices and unemployment rates, will shape how foreclosure activity will unfold.
"With rising interest rates, resulting in higher mortgage payments, especially those with [adjustable-rate mortgages], this could potentially increase the risk of foreclosure," von Pohlmann said.
More than 270,000 homes in the U.S. had lenders start foreclosure activities in 2023, an increase of 9 percent from 2022, with California, Texas and Florida leading the country. Bank repossessions were down 2 percent last year compared to 2022, with Michigan, Pennsylvania and California seeing the highest number, according to data from ATTOM.
https://www.msn.com/en-us/money/rea...S&cvid=4750fdd84d2e4564a2c632a1d0b8d08a&ei=12
Foreclosure filings last year, including default notices, scheduled auctions and bank repossessions, jumped 10 percent compared to 2022 and were up 136 percent from 2021. But they were down nearly 30 percent compared to 2019, the year before COVID disrupted the housing market.
There were more than 357,000 homes in the foreclosure process in 2023, about 0.26 percent of all homes in the U.S., up slightly from a year ago. But these homes that found themselves entering this process were down from the 0.36 percent seen in 2019 and from what ATTOM says was a peak more than a decade ago with 2.23 percent of properties finding themselves in foreclosure activity.
"We see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility," ATTOM CEO Rob Barber said in a statement. "Our data suggests that while foreclosure activity may fluctuate, it's unlikely to approach the highs seen in the last decade."
A spokesperson at ATTOM told Newsweek in a follow-up email that if certain economic trends shift, foreclosures could rise.
"If we see home prices decline, this could potentially lead to negative equity. And if unemployment rates continue to rise, we may see more and more people not able to make their mortgage payments," said Jennifer von Pohlmann, a senior director of public relations at ATTOM.
Data from December showed that foreclosure filings fell 6 percent compared to the previous month and were down by 2 percent compared to the same time a year ago, according to ATTOM. The firm produces its analysis based on public records and foreclosure filings from more than 3,000 countries across the country, it said.
New Jersey, Illinois, Delaware, Maryland and Ohio registered the highest rates of foreclosures in 2023. Metropolitan areas that reported the most foreclosure activities included Atlantic City in New Jersey, Lakeland in Florida, Columbia in South Carolina and Fayetteville in North Carolina.
Barber suggested that the foreclosure activity in 2023 reflected economic trends of a housing market that is less predictable than it was during the pandemic.
"We foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape," he said. "This shift offers a silver lining—the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight."
ATTOM's spokesperson added that the trajectory of interest rates, which have been elevated since the Federal Reserve hiked rates to fight inflation, as well as home prices and unemployment rates, will shape how foreclosure activity will unfold.
"With rising interest rates, resulting in higher mortgage payments, especially those with [adjustable-rate mortgages], this could potentially increase the risk of foreclosure," von Pohlmann said.
More than 270,000 homes in the U.S. had lenders start foreclosure activities in 2023, an increase of 9 percent from 2022, with California, Texas and Florida leading the country. Bank repossessions were down 2 percent last year compared to 2022, with Michigan, Pennsylvania and California seeing the highest number, according to data from ATTOM.
https://www.msn.com/en-us/money/rea...S&cvid=4750fdd84d2e4564a2c632a1d0b8d08a&ei=12
