U.S. Foreclosure Activity Witnesses a Modest Rise in 2023, Yet Remains Below Pre-Pandemic Peaks
by ATTOM Staff
According to ATTOM’s recently released Year-End 2023 U.S. Foreclosure Market Report, there has been a discernible uptick in foreclosure filings, marking a 10% increase from the previous year, although it still falls considerably below the levels witnessed before the onset of the pandemic. With a total of 357,062 properties affected by foreclosure actions throughout the year, accounting for 0.26% of all U.S. housing units, this data reflects a return to more traditional market patterns following years of economic volatility.
Rob Barber, CEO at ATTOM, suggests that the recent rise in foreclosure activity should not necessarily be a cause for alarm but rather viewed as a market correction. He notes, “Our data suggests that while foreclosure activity may by ATTOM Staff fluctuate, it’s unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape.”
Foreclosure starts on the rise nationwide
The report indicates that foreclosure starts nationwide increased by 9% in 2023 compared to the previous year, reaching a total of 270,222 properties. Among the states experiencing notable increases in foreclosure starts were California, Texas, and Florida. Conversely, bank repossessions saw a marginal decline, signifying potential stabilization in this aspect of the market.
New Jersey, Illinois, and Delaware post highest state foreclosure rates in 2023
In terms of regional variations, New Jersey, Illinois, and Delaware reported the highest state foreclosure rates in 2023, while metropolitan areas such as Cleveland, Atlantic City, and Lakeland recorded the highest foreclosure rates. Despite these localized fluctuations, the overall trend suggests a market that is gradually finding its equilibrium.
Furthermore, the average time to complete foreclosures decreased both quarterly and annually in 2023, indicating a streamlining of the foreclosure process. However, certain states such as Louisiana and Hawaii still exhibited longer-than-average foreclosure timelines, highlighting regional disparities in foreclosure proceedings.
Overall, while the increase in foreclosure activity may raise some concerns, particularly in certain regions, it appears to be part of a broader market adjustment rather than a sign of impending crisis. As the housing market continues to adapt to changing economic conditions, stakeholders are encouraged to remain vigilant yet optimistic about the market’s resilience and potential for continued stability.
If you are interested in learning more and discovering more granular data, see the entire press release here. Or contact one of our data experts to get the data behind the story.