The number of foreclosures in the United States continues to rise monthly and annually nationwide, according to a real estate market report released on Monday.
The report, compiled by ATTOM, a land and real estate data provider, counted almost 33,000 foreclosure filings of U.S. properties in the month of February—down 1 percent from January but up 8 percent from a year ago.
Of those 33,000, two-thirds were new filings started in February, up 4 percent from last month and up 11 percent from 2023.
“The annual uptick in U.S. foreclosure activity hints at shifting dynamics within the housing market,” said Rob Barber, CEO at ATTOM. “These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices. We continue to closely monitor these trends to comprehend their complete effect on foreclosure activity.”
Nationwide, one in every 4,279 housing units had a foreclosure filing in February 2024, the data company said, with higher percentages of foreclosures in metropolitan areas.
The counted foreclosure filings include default notices, scheduled auctions, and bank repossessions. If more than one type of foreclosure document is received for the same property, only the most recent filing has been counted in the report, ATTOM said.
Numbers vary from state to state, with the highest foreclosure filing rates occurring in South Carolina (one in every 2,248 housing units), Delaware (one in every 2,428 housing units), and Florida (one in every 2,632 housing units), followed by Ohio (one in every 2,828 housing units), and Connecticut (one in every 2,884 housing units).
Of the metropolitan areas with a population greater than 1 million, Orlando, Florida, ranked first in terms of highest foreclosure filing rates in February 2024 (one in every 1,938 housing units), followed by Cleveland, Ohio, Riverside, California, Philadelphia, Pennsylvania, and Miami, Florida (one in every 2,392 housing units).
Metropolitan areas with a population between 200,000 and 1 million appeared to be worse off, with the highest foreclosure filing rates being Columbia, South Carolina (one in every 1,478 housing units), followed by Lakeland, Florida; Merced, California; and Florence, South Carolina (one in every 1,809 housing units foreclosing).
The numbers reflect a similar trend observed in a February report that looked exclusively at foreclosures of commercial properties in the United States. The report revealed what ATTOM called “a significant climb” in commercial foreclosures over the years, from a 141 low in May 2020 to a 635 high in January 2024, with the number having doubled since March last year.
ATTOM says its data sourcing covers 99 percent of the U.S. population, encompassing more than 155 million U.S. residential and commercial properties.
The highest number of foreclosures ever recorded per month by the company, which started its operations in 2014, was 889, recorded in October 2018.
With a lack of available homes on the market, high home prices, interest rates currently hovering near 7 percent, and mortgage rates nearly double what they were three years ago, the rising trend in foreclosures may be unlikely to revert any time soon.
