The US foreclosure market for 2018 improved from 2017 with only 624,753 properties reporting to be in foreclosure. This is down 8% from 2017, and also down 78% from its peak of 2.9 million back in 2010. According to ATTOM Data Solutions, this is the lowest level that it has been since 2005.
The 624,753 properties with foreclosure filings that were reported in 2018 accounted for less than 1/2 of 1% of all US housing units. This is down from the .51% in 2017 and also down from its peak of 2.23% reported back in 2010.
In 2018, states with the highest percentage of foreclosures were:
New Jersey 1.33%
Delaware .96%
Maryland .86%
Illinois .74%
Connecticut .72%
New Jersey has held the top spot since 2015.
According to the report, it appears that the effects of the housing crisis have come to a conclusion and there is evidence that most of the distress from the prior housing crisis has now been cleaned up. According to the announcement, there appears to be some evidence of some properties and some regions reporting higher foreclosure starts in more than one third of all the states and local housing markets. Some of the distress was caused by natural disasters, specifically in Houston, where there was a hurricane and in California, where they were wildfires.
According to the announcement by ATTOM Data Solutions, “Lenders repossessed 230,305 properties through foreclosure (REO) in 2018, down 21 percent from 2017 and down 78 percent from a peak of 1,050,500 in 2010 to the lowest level as far back as data is available — 2006.
“While completed foreclosures (REOs) are on the decline, California and Florida combined have totaled nearly 1.5 million over the last 10 years. States to lead the nation in REOs also include Michigan (327,783), Texas (313,930), Georgia (299,394) and Illinois (303,404).
“Counter to the national trend, five states posted a year-over-year increase in REOs, led by New Mexico (up 20 percent); North Dakota (up 15 percent); Alaska (up 8 percent); Connecticut (up 5 percent); and Maine (up 5 percent).
Metropolitan statistical areas with a population greater than 200,000 that saw a year-over-year increase in REOs included Flint, Michigan (up 161 percent), Beaumont, Texas (up 63 percent), Albuquerque, New Mexico (up 27 percent), Greeley, Colorado (up 24 percent) and Houston, Texas (up 17 percent).”
18 states posted year-over-year increases in foreclosure starts in 2018:
Minnesota + 29%
Texas + 15%
Michigan + 15%
Florida + 13 %
Louisiana + 5%
Delaware + 2%