Foreclosure filings in August were down 12 percent from the previous month and down 6 percent from a year ago on a total of 109,561, according to a new study from RealtyTrac.com. The 6 percent year-over-year decrease in August followed five consecutive months with year-over-year increases. The report also shows one in every 1,205 U.S. housing units had a foreclosure filing — default notices, scheduled auctions and bank repossessions — in August. “Foreclosure starts in August continued to search for a new floor below even pre-recession levels, indicating the housing recovery of the past three years is built on a solid financing foundation,” Daren Blomquist, vice president at RealtyTrac, said in a news release. “But the continued rise in bank repossessions indicates more batches of bank-owned homes will be rippling through the housing market over the next three to 12 months as lenders list these properties for sale. “This influx of bank-owned inventory may be good news for an inventory-challenged housing market, but buyers and investors interested in purchasing these bank-owned homes should understand they tend to be lower-value properties in areas where house values have not recovered as quickly and are more likely to have deferred maintenance issues that will need to be addressed,” Blomquist said in the release. “The average estimated market value of REO properties nationwide is now 33 percent below the average market value of non-distressed properties, and homes that were repossessed in the second quarter of this year on average had been languishing in the foreclosure process for 629 days.” Foreclosure starts drop to lowest level since November 2005 A total of 45,072 U.S. properties started the foreclosure process for the first time in August, down 1 percent from previous month and down 19 percent from year ago to the lowest level since November 2005. So far in 2015, foreclosure starts have averaged 49,362 per month, below the pre-crisis average of 52,279 per month in 2005 and 2006. Foreclosure starts decreased from a year ago in 30 states, including: California (down 29 percent from year ago) Florida (down 40 percent) New Jersey (down 38 percent) Texas (down 17 percent) Maryland (down 26 percent) Counter to the national trend, foreclosure starts increased from a year ago in 19 states, including: New York (up 20 percent) Virginia (up 16 percent) Missouri (up 77 percent) Massachusetts (up 61 percent) Minnesota (up 20 percent) Bank repossessions increase from a year ago in 36 states There were a total of 36,792 U.S. properties repossessed by lenders through foreclosure (REO) in August, down 22 percent from the previous month but still up 40 percent from a year ago, the sixth consecutive month with REOs increased on a year-over-year basis. Bank repossessions in August were still well above their pre-crisis average of 23,119 per month in 2005 and 2006, but well below their peak of 102,134 in September 2010. Bank repossessions increased from a year ago in 36 states, including: Florida (up 23 percent) California (up 31 percent) Texas (up 168 percent) Ohio (up 35 percent) New Jersey (up 295 percent) “Foreclosure sales from the Trustee still require cash at the time of sale, so as a result lower-priced properties to mid-priced properties tend to sell for close to full value. Higher-priced foreclosures, while rare, can sometimes present an opportunity. With stricter lender requirements we are most likely a few years away from foreclosures truly having an impact on home values in the area,” Greg Smith, owner/broker at RE/MAX Alliance in Denver, said in the release. Counter to the national trend, bank repossessions decreased from a year ago in 13 states, including: Georgia (down 55 percent) Illinois (down 22 percent) Wisconsin (down 7 percent) Connecticut (down 36 percent) Kentucky (down 45 percent) Nevada, Maryland, New Jersey post highest state foreclosure rates Nevada foreclosure activity increased 4 percent from a year ago in August — driven largely by a 233 percent jump in bank repossessions — and the state posted the nation’s highest foreclosure rate for the first time since September 2014. One in every 507 Nevada housing units had a foreclosure filing in August, more than twice the national average. Maryland foreclosure activity was unchanged from a year ago despite a spike in bank repossessions, and the state posted the nation’s second highest foreclosure rate for the third month in a row. One in every 534 Maryland housing units had a foreclosure filing in August. New Jersey foreclosure activity increased 3 percent from a year ago — driven largely by a 295 percent year-over-year increase in bank repossessions and 38 percent year-over-year increase in scheduled foreclosure auctions — and the state posted the nation’s third highest state foreclosure rate for the third month in a row. One in every 539 New Jersey housing units had a foreclosure filing in August. Florida’s foreclosure rate dropped out of the top three highest among the states for the first time since June 2012, thanks in part to a 33 percent year-over-year decrease in foreclosure activity in August to the lowest level since April 2007. South Carolina foreclosure activity increased 11 percent from a year ago in August, boosting the state’s foreclosure rate to fifth highest nationwide. One in every 863 South Carolina housing units had a foreclosure filing in August. Other states with foreclosure rates ranking among the top 10 nationwide in August were: Illinois (one in every 921 housing units with a foreclosure filing) North Carolina (one in every 970 housing units) New Mexico (one in every 1,005 housing units) Indiana (one in every 1,037 housing units) Ohio (one in every 1,037 housing units) 10 of 20 largest U.S. metros post annual increase in foreclosure activity Among the nation’s 20 largest metropolitan statistical areas by population, 10 posted year-over-year increases in overall foreclosure activity, led by: St. Louis (up 140 percent) Boston (up 49 percent) Dallas-Fort Worth (up 26 percent) Minneapolis-St. Paul (up 26 percent) New York (up 22 percent). Boston, Dallas-Fort Worth and Minneapolis-St. Paul all continued to post foreclosure rates below the national […]
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