RealtyTrac released its Midyear 2016 U.S. Foreclosure Market Report showing a total of 533,813 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2016, down 20 percent from the previous six months, and down 11 percent from the first six months of 2015.
Counter to the national trend, 19 states posted year-over-year increases in foreclosure activity in the first half of 2016, including Massachusetts (up 46 percent); Connecticut (up 40 percent); Virginia (up 18 percent); Alabama (up 11 percent) and New York (up 10 percent).
Among the nation’s 20 most-populated metro areas, five posted year-over-year increases in foreclosure activity: Boston (up 38 percent); Philadelphia (up 7 percent); New York (up 4 percent); Washington, D.C. (up 3 percent) and Baltimore (up 1 percent).
“Although there are some local outliers, the downward foreclosure trend continued in the first half of 2016 in most markets nationwide,” RealtyTrac Senior Vice President Daren Blomquist said in a news release. “While U.S. foreclosure activity is still above its pre-recession levels, many of the states hit hardest by the housing crisis have now dropped below pre-recession foreclosure activity levels. With some exceptions, states with foreclosure activity continuing to run above pre-recession levels tend to be those with protracted foreclosure timelines still working through legacy distress from the last housing bust.”
Activity below pre-recession average in 15 states
There were 280,989 U.S. properties with foreclosure filings in Q2 2016, down 3 percent from the previous quarter and down 18 percent from a year ago to the lowest level since Q4 2006.
Nationwide foreclosure activity in Q2 2016 was still 21 percent above the pre-recession average of 232,082 properties with foreclosure filings per quarter in 2005, 2006 and 2007, but Q2 2016 foreclosure activity was below pre-recession averages in 15 states, led by Colorado (72 percent below), Michigan (46 percent below) and Texas (46 percent below).
States where Q2 2016 foreclosure activity was still above pre-recession averages included New Jersey (215 percent above), New York (127 percent above), South Carolina (376 percent above) and Massachusetts (127 percent above).
There were 94,469 U.S. properties with a foreclosure filing in June, down 6 percent from the previous month and down 19 percent from a year ago to the lowest level since July 2006 — a nearly 10-year low.
Nationwide 0.40 percent of all housing units (one in 249) had a foreclosure filing in the first six months of 2016.
States with highest foreclosure rates were New Jersey (0.98 percent of housing units with a foreclosure filing), Maryland (0.90 percent), Delaware (0.78 percent), Florida (0.70 percent) and Nevada (0.68 percent).
A total of 253,408 U.S. properties started the foreclosure process in the first half of 2016, down 17 percent from a year ago the lowest level for any half-year period since RealtyTrac began tracking foreclosure starts in 2006.