The U.S. foreclosure market experienced a notable uptick in July 2024, with foreclosure filings increasing by 15% from the previous month, according to the latest report from ATTOM Data, a land, property, and real estate data firm. A total of 31,929 properties across the nation faced foreclosure actions, which include default notices, scheduled auctions, or bank repossessions. This marks a slight 0.2% increase from the same period last year.
Rob Barber, CEO of ATTOM, highlighted the significance of these developments. “July’s foreclosure activity reflects a slight shift in the housing market,” Barber said. “With an 18% increase in foreclosure starts and a 14% rise in completed foreclosures from last month, these shifts may highlight growing pressures in certain areas. However, soaring home prices continue to spike the value of homes across the nation, boosting equity for homeowners at virtually every stage of paying off mortgages. Monitoring these next few months will help us better understand the implications for the real estate sector.”
Highest foreclosure rates in Delaware, Nevada, and Utah
Nationwide, one in every 4,414 housing units had a foreclosure filing in July 2024. Delaware led the states with the highest foreclosure rates, with one in every 2,214 housing units receiving a foreclosure filing. Nevada and Utah followed closely, with one in every 2,245 and 2,289 housing units, respectively. Other states with high foreclosure rates included New Jersey and Illinois.
In terms of metropolitan statistical areas (MSAs) with populations over 200,000, Provo-Orem, Utah, reported the highest foreclosure rate, with one in every 940 housing units facing foreclosure. Macon, Georgia, and Columbia, South Carolina, were also among the top metro areas with significant foreclosure activity.
California, Florida, and Texas lead in foreclosure starts
Lenders initiated foreclosure proceedings on 21,870 U.S. properties in July 2024, an 18% increase from June and a 4% rise compared to July 2023. California led the nation with 2,342 foreclosure starts, followed by Florida (2,339 starts) and Texas (2,222).
Among major metropolitan areas with populations over 1 million, New York City topped the list with 1,286 foreclosure starts. Chicago, Philadelphia, Miami, and Los Angeles also saw significant numbers of foreclosure initiations.
Completed foreclosures increase by 14%
The report also noted a rise in completed foreclosures, with lenders repossessing 3,282 U.S. properties in July 2024, marking a 14% increase from the previous month. However, this figure represented a 2% decrease from July 2023.
New York led the states with the highest number of completed foreclosures (REOs) at 377, followed closely by California (370 REOs) and Illinois (221). Major metropolitan areas like New York City, Chicago, and San Francisco also recorded significant numbers of completed foreclosures.
As the housing market continues to navigate these fluctuations, industry experts will be closely watching how these trends evolve in the coming months.
