RealtyTrac, a source for comprehensive housing data, released its U.S. Foreclosure Market Report for July 2014, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 109,434 U.S. properties in July, an increase of 2 percent from the previous month, but down 16 percent from a year ago. The report also shows one in every 1,203 U.S. housing units with a foreclosure filing during the month.
“July was the 46th consecutive month where U.S. foreclosure activity was down on a year-over-year basis,” said Daren Blomquist, vice president at RealtyTrac. “After nearly four years of falling foreclosures, we are starting to see evidence that foreclosure numbers are normalizing at the national level. The 16 percent decrease in July was exactly half the annual decrease we saw a year ago in July 2013, when U.S. foreclosure activity was down 32 percent on a year-over-year basis.
“The number of state and local markets with persistent foreclosure problems is becoming fewer and farther between, although there were some surprise spikes in foreclosure activity in July in markets that had previously been experiencing long-term downward trends in foreclosure activity,” Blomquist noted. “For example, Houston foreclosure activity jumped 66 percent in July compared to a year ago following 23 consecutive months of decreases, and Los Angeles foreclosure activity was up 10 percent from a year ago following 31 consecutive months of decreases.”
Other high-level findings from the report:
· A total of 49,624 U.S. properties started the foreclosure process for the first time in July, a 5 percent increase from the previous month, but down 18 percent from a year ago — the 24th consecutive month with a year-over-year decrease in U.S. foreclosure starts.
· Despite the annual decrease nationally, foreclosure starts increased from a year ago in 14 states, including Nevada (up 128 percent), Texas (up 29 percent), New York (up 17 percent), Massachusetts (up 12 percent) and Michigan (up 6 percent).
· A total of 51,595 U.S. properties were scheduled for foreclosure auction in July, up 10 percent from the previous month but down 3 percent from a year ago. Non-judicial foreclosure auctions — those in states not requiring a judge to file a judgment for the foreclosure auction to proceed — increased 26 percent from June to July, but were down 7 percent on a year-over-year basis.
· Despite the annual decrease nationally, scheduled foreclosure auctions increased from a year ago in 20 states, including New Jersey (up 105 percent), Oregon (up 50 percent), Louisiana (up 32 percent), Utah (up 30 percent), Connecticut (up 18 percent) and New York (up 16 percent).
· A total of 25,937 U.S. properties were repossessed by lenders via foreclosure (REO) in July, down 4 percent from the previous month and down 30 percent from a year ago to the lowest level since April 2007.
· Despite the decrease nationally, bank repossessions increased from a year ago in seven states, including Maryland (up 77 percent), California (up 22 percent), Oregon (up 13 percent) and New Jersey (up 12 percent).
Rising foreclosure activity bucks national trend in five of 20 largest metro areas
Foreclosure activity increased from a year ago in five of the nation’s 20 most populous metropolitan statistical areas, bucking the national trend.
The Houston metro area posted the biggest annual increase in foreclosure activity from a year ago among the 20 largest metro areas, up 66 percent. The increase in Houston came on the heels of 23 consecutive months of decreasing foreclosure activity on an annual basis and was driven primarily by a 116 percent jump in scheduled foreclosure auctions — the first public notice starting the foreclosure process in Texas.
Washington, D.C., documented the second highest annual increase in foreclosure activity in July, up 24 percent from a year ago. July marked the 14th out of the last 17 months where DC metro area foreclosure activity has increased on an annual basis.
Thanks to rebounding bank repossessions (REOs), Southern California metro areas posted annual increases in foreclosure activity following 31 consecutive months of decreasing activity on a year-over-year basis. San Diego’s overall foreclosure activity increased 12 percent from a year ago thanks to a 40 percent jump in REOs; Los Angeles’ overall foreclosure activity increased 10 percent from a year ago thanks to a 58 percent jump in REOs; and Riverside-San Bernardino’s foreclosure activity increased 3 percent from a year ago thanks to a 27 percent jump in REOs.