Understanding the November 2023 U.S. Foreclosure Market Dynamics
The real estate landscape in the United States is a dynamic ecosystem that experiences cyclical fluctuations, often impacted by various economic factors. The recently released November 2023 U.S. Foreclosure Market Report by ATTOM, a renowned curator of land, property, and real estate data, sheds light on crucial trends and patterns within the foreclosure market.
Examining Foreclosure Activity
Total Properties Affected
In November 2023, there were a total of 32,120 properties across the United States with foreclosure filings. While this represents a 5 percent increase compared to the previous year, it’s noteworthy that there was a 7 percent decrease from the prior month.
Regional Trends
The states with the highest foreclosure rates were Delaware, Maryland, Ohio, South Carolina, and New Jersey. These states reported varying rates of foreclosure filings, with Delaware leading at one in every 2,393 housing units experiencing a foreclosure filing.
Metropolitan Statistical Areas
Analyzing metropolitan statistical areas with a population of at least 200,000, Bakersfield, CA, Cleveland, OH, Canton, OH, Columbia, SC, and Stockton, CA, exhibited the highest foreclosure rates in November 2023.
Examining Specifics: Completions, Starts, and REOs
Foreclosure Completions (REOs)
Lenders repossessed 2,558 U.S. properties through completed foreclosures (REOs) in November 2023, marking a significant 23 percent decrease from the previous month and a substantial 32 percent decrease from the previous year.
States and Metropolitan Areas Affected
States like Michigan, California, Illinois, Ohio, and Pennsylvania witnessed the highest number of REOs, with Detroit, MI, Chicago, IL, New York, NY, Baltimore, MD, and St. Louis, MO, being the major metropolitan areas significantly impacted.
Foreclosure Starts
During the same period, lenders initiated the foreclosure process on 22,363 U.S. properties. While this reflected a 4 percent decrease from the previous month, it marked an 8 percent increase from a year ago.
High-Impact Regions
Texas, California, Florida, New York, and Ohio were states where foreclosure starts were most prominent in November 2023. Major metropolitan areas like New York, NY, Houston, TX, Philadelphia, PA, Chicago, IL, and Miami, FL, faced significant foreclosure starts.
Anticipating Future Trends
Rob Barber, CEO at ATTOM, noted the cyclical nature of the market and hinted at a potential uptick in foreclosure activity in 2024. This anticipation stems from evolving economic factors and shifting market dynamics.
Methodology of the Report
The ATTOM U.S. Foreclosure Market Report provides a meticulous count of properties with foreclosure filings. It incorporates data from over 3,000 counties, covering more than 99 percent of the U.S. population. The report’s methodology involves a comprehensive approach, considering documents filed in all three phases of foreclosure.