US Foreclosures Rise For First Time In 36 Months, Florida Up 35%

foreclosure heatwave

US Foreclosures Rise For First Time In 36 Months

According to the just released July 2018 U.S. Foreclosure Market Report released by ATTOM Data Solutions, foreclosure starts in July increased by 1% from a year ago — the first year-over-year increase following 36 consecutive months of decreases.

Foreclosures rose from a year ago in 96 of the 219 metropolitan statistical areas, or 44% of the markets analyzed in the report; 33 of those areas posted their third straight monthly increase. A total of 30,187 U.S. properties started the foreclosure process for the first time in July, up 1 percent from the previous month and while the increase was less than 1% from a year ago, it marked the first annual increase in exactly 3 years.

21 states posted a year-over-year increase in foreclosure starts in July, including Florida (up 35 percent); California (up 3 percent); Texas (up 7 percent); Illinois (up 7 percent); and Ohio (up 2 percent).

Metro areas posting year-over-year increases in foreclosure starts in July included Los Angeles, California (up 20 percent); Houston, Texas (up 76 percent); Philadelphia, Pennsylvania (up 10 percent); Miami, Florida (up 29 percent); and San Francisco, California (up 10 percent).

“The increase in foreclosure starts is not just a one-month anomaly in many local markets given that July represented the third consecutive month with a year-over-year increase in 33 metro areas, including Los Angeles, Miami, Houston, Detroit, San Diego and Austin,” said Daren Blomquist, senior vice president with ATTOM Data Solutions.

“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. Most susceptible to rising foreclosure starts are affordability-challenged markets where homebuyers are more financially stretched and markets with some type of trigger event such as a natural disaster or large-scale layoffs.”

The data comes shortly after a separate report found that there has been a plunge of sales in ultra-luxury real estate in New York City, where apartments that cost $5 million or more have seen their sale plunge more than 31% in the first 6 months of the year.

The surprising reversal in the US housing sector comes at a time when the US economy is reportedly firing on all four cylinders, with the stock market at all time highs and not long after the Department of Commerce revised income and spending data to “discover” that US households had actually saved twice as much as previously expected. Which begs the question: is the rise in interest rates a sufficiently adverse development to offset all the other favorable trends in the economy, or is something more sinister – and unknown – taking place in the US economy.

As a reminder it is housing – and not financial markets or stocks – that has traditionally been the most relevant, and aspirational, asset for the US middle class and as such is the best indicator of economic prosperity (or lack thereof) for a majority of the US population. And recent trends are anything but optimistic.


One Response to “US Foreclosures Rise For First Time In 36 Months, Florida Up 35%”
  1. Ronald NMI Williams says:

    We are homeowners whose Note was originated by Washington Mutual Bank. Our case is set out by the Record in our matter Williams v. U.S.A. DCC 1:17-cv-00783 and our rehearing Petition before the DC Cir. #18-5034. That Record demonstrates how, acting in favor of the FDIC, a DC District Judge and a three-judge panel, completed a conspiracy by Orders and Judgments, violating the most fundamental of our civil rights: the right to petition and to due process of law. We are now trying to make public what was done to us, with a view to cause the FBI and DOJ to take the appropriate civil and criminal response. The rehearing petition says it all as it pertains the conspiracy we were made victims by Judges and government lawyers – primarily from the FDIC.
    This is of class action proportions. The Chase Bank, FDIC and Washington Mutual Bank RICO scheme with judicial officers participants. We need the citizenry to come forward here.

Leave a Reply

Your email address will not be published. Required fields are marked *