Foreclosure Rates Rise in Nearly Half of Metro Areas | Think Realty
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Foreclosure Rates Rise in Nearly Half of Metro Areas

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Nearly half of all metro areas tracked by ATTOM Data Solutions saw a rise in foreclosure starts this summer. 96 of the 219 (44%) metropolitan statistical areas (MSAs) measured by the housing data giant posted year-over-year increases in foreclosure activity. Month-over-month, national foreclosure activity increased in July as well, with a total of 30,187 properties starting the process. This is a 1% increase over June of this year.

Daren Blomquist, senior vice president with ATTOM Data Solutions, observed of the shifting trend, “Gradually loosening lending standards over the past few years have introduced a modicum of risk back into the housing market, and that additional risk is resulting in rising foreclosure starts in a diverse set of markets across the country.” He added, “Most susceptible to rising foreclosure starts are affordability-challenged markets where homebuyers are more financially stretched and markets with some type of trigger events such as a natural disaster or large-scale layoffs.”

Rising Foreclosure Activity is an Ongoing Trend

Although foreclosure activity is still far lower than during the housing crisis, Blomquist warned against looking at the rising rates as an anomaly. He noted July 2018 was the third consecutive month with a year-over-year increase in one-third of the areas measured. Some markets on the list include:

  • Los Angeles
  • Miami
  • Houston
  • Detroit
  • San Diego
  • Austin

 

The five metro areas with populations of more than 200,000 with the highest foreclosure rates in July were:

  • Atlantic City, New Jersey
  • Peoria, Illinois
  • Fayetteville, North Carolina
  • Trenton, New Jersey
  • Philadelphia, Pennsylvania