Default notices, scheduled auctions and bank repossessions were reported on 493,066 U.S. properties in 2019, down 21 percent from 2018 and down 83 percent from a peak of nearly 2.9 million in 2010, according to a report from ATTOM Data Solutions.
ATTOM’s Year-End 2019 U.S. Foreclosure Market Report found foreclosure filings in 2019 reached their lowest level since tracking began in 2005. The foreclosure filings in 2019 represented 0.36 percent of all U.S. housing units, down from 0.47 percent in 2018 and down from a peak of 2.23 percent in 2010.
“The continued decline in distressed properties is one of many signs pointing to a much-improved housing market compared to the bad old days of the Great Recession,” ATTOM Chief Product Officer Todd Teta said in a release. “That said, there is some reason for concern about the potential for a change in the wrong direction, given that residential foreclosure starts increased in about a third of the nation’s metro housing markets in 2019. Nationally, the number also ticked up a bit in December. While that’s not a major worry, it’s something that should be watched closely in 2020.”
According to the report, lenders started the foreclosure process on 335,985 U.S. properties in 2019, a new all-time low, down 9 percent from 2018 and down 84 percent from a peak of 2,139,005 in 2009.
States that saw a decline in foreclosure starts from last year included Nevada (down 30 percent); New York (down 28 percent); New Jersey (down 21 percent); California (down 13 percent); and Arizona (down 11 percent).
“With foreclosure inventory down and interest in that inventory up, it’s a good time for sellers with distressed inventory to sell while the sun shines,” Auction.com Vice President of Market Economics Daren Blomquist said. “Foreclosure buyers still enjoy sizable discounts below estimated market value due to the distressed nature of foreclosure inventory, but the average sales price for foreclosure auction properties sold through the Auction.com platform rose to a new record high in 2019 even as the rate of sales to third-party buyers increased.”
The report found that 14 states posted year-over-year increases in foreclosure starts in 2019, including Rhode Island (up 54 percent); Mississippi (up 39 percent); Georgia (up 24 percent); Arkansas (up 14 percent); and Louisiana (up 11 percent).
ATTOM said metropolitan statistical areas with a population greater than 1 million that saw a double-digit percent increase in foreclosure starts from last year included Baton Rouge, La. (up 43 percent); Atlanta (up 25 percent); Salt Lake City (up 17 percent); Orlando, Fla. (up 16 percent); and Portland, Ore.(up 16 percent).
“The home-foreclosure rates continued shrinking dramatically across the U.S. in 2019 to a level not seen in 10 years, as the strong economy leaves more people in a position to make their mortgage payments,” said Ohan Antebian, general manager for ATTOM’s consumer facing business, RealtyTrac. “Completed foreclosures dropped 37 percent overall, with decreases in all but one state and almost every metro housing market.
“As wages rise, interest rates drop, the stock market keeps hitting new highs and the broader economy remains healthy, the factors that lead to foreclosure simply aren’t there,” Antebian said. “While home prices are rising, homeowners can afford them. The drop-off has been so steep that for every 10 completed foreclosures following the housing market crash a decade ago, there now is just one.”