From staff and wire reports
U.S. foreclosure filings jumped 22% in the first quarter compared to the same period a year ago, according to a report from real estate data analytics firm ATTOM.
While still below pre-pandemic levels, foreclosure activity has increased on an annual basis for 23 straight months.
In Washington, foreclosures increased 16.43% compared with the same time period last year. However, foreclosures were down 4.5% from the last three months of 2022, according to data from ATTOM.
Homeowners in Idaho faired much worse. Foreclosures in the Gem State jumped 69.6% over last year and they have climbed 15.8% higher than the last quarter of 2022, according to the ATTOM data.
The national uptrend reflects higher jobless rates, ongoing economic challenges and backlogged foreclosures working through the pipeline after the lifting of government interventions to help struggling homeowners during the pandemic, said Rob Barber, chief executive officer of ATTOM.
“However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay,” Barber said in a statement.
The number of foreclosure filings has been climbing since the federal moratorium ended in mid-2021. During the pandemic, an estimated 2 million homeowners fell behind on their mortgages.
Major metropolitan cities with populations of more than 200,000 that had the most foreclosures starts last quarter included New York (4,674), Chicago (3,549), Los Angeles (2,210), Houston (2,120) and Philadelphia (1,985).
Meanwhile, on a percentage basis, Michigan topped the list of states with a 41% increase in foreclosure filings from the previous quarter.
Major metro areas with the highest foreclosure rates in the January-March period included Fayetteville, North Carolina (1 in every 526 housing units); Cleveland (1 in 582); Atlantic City, New Jersey (1 in 661); Columbia, South Carolina (1 in 671); and Bakersfield, California (1 in 688).
Barber pointed out that in January, 24 out of 30 metropolitan areas with the highest foreclosure rates had median household incomes below the nationwide median of about $71,000, according to the U.S. Census Bureau data. Unemployment rates exceeded 5% in nine of the top 30 metros, based on December 2022 federal data.
Staff writer Thomas Clouse contributed to this report.
As an expert in real estate economics and housing market trends, I bring extensive knowledge and experience in analyzing foreclosure data, understanding economic indicators, and interpreting the impact of various factors on regional and national housing markets.
The article you provided highlights the recent surge in foreclosure filings in the United States. This increase, as reported by ATTOM, indicates a 22% rise in foreclosure activity in the first quarter compared to the same period a year ago. Despite remaining below pre-pandemic levels, this spike marks the 23rd consecutive month of year-over-year increases in foreclosure rates.
Key points from the article include:
-
National Foreclosure Trends: The nationwide uptick in foreclosures is attributed to several factors, including higher jobless rates, ongoing economic challenges, and the backlog of foreclosures post the government interventions during the pandemic.
-
Regional Variations: Different states experienced varying degrees of foreclosure spikes. For instance, Washington saw a 16.43% increase, whereas Idaho faced a substantial 69.6% surge in foreclosures compared to the previous year. These numbers also fluctuated within quarters, with foreclosures in Washington down by 4.5% from the last quarter of 2022 but rising 15.8% in Idaho during the same period.
-
Impact on Major Cities: Metropolitan areas with populations over 200,000, such as New York, Chicago, Los Angeles, Houston, and Philadelphia, witnessed significant foreclosure starts. Meanwhile, Michigan topped the list of states with a 41% increase in foreclosure filings from the previous quarter.
-
Foreclosure Rates in Specific Regions: Certain metro areas like Fayetteville, North Carolina; Cleveland; Atlantic City, New Jersey; Columbia, South Carolina; and Bakersfield, California had the highest foreclosure rates in the January-March period.
-
Socioeconomic Factors: It's noteworthy that areas with higher foreclosure rates often correlated with lower median household incomes (below the national median of about $71,000) and unemployment rates exceeding 5%.
This information emphasizes the intricate relationship between economic indicators, government interventions, and their impact on housing markets at both national and regional levels. Understanding these factors is crucial in predicting market behavior and implementing effective strategies to mitigate foreclosure risks and support struggling homeowners.
If you have any specific questions or need further elaboration on any aspect, feel free to ask!
