REOs also continue their downward trend
Foreclosures across the US continued to decline in 2024, according to the latest report from ATTOM, with filings affecting 322,103 properties, which is a 10% drop from the previous year.
This marks a steady reduction in foreclosure activity, signaling a potential stabilization in the housing market after years of volatility linked to the pandemic.
The Year-End 2024 US Foreclosure Market Report from ATTOM shows that foreclosure filings, which include default notices, scheduled auctions, and bank repossessions, accounted for 0.23% of all US housing units last year. This is down from 0.25% in 2023 and significantly lower than the 2.23% peak seen in 2010, during the aftermath of the housing crisis.
"The continued decline in foreclosure activity throughout 2024 suggests a housing market that may be stabilizing, even as economic uncertainties persist," said Rob Barber, CEO of ATTOM.
He pointed out that foreclosure filings may be returning to more predictable levels, offering greater clarity to industry professionals, investors, and homeowners alike.
"While foreclosure filings remain a critical metric for understanding market health, current trends may point to a more balanced landscape, potentially shaped by careful lending practices and ongoing homeowner resilience," Barber added.
December 2024 saw 28,632 properties enter the foreclosure process, marking a 3% drop from the previous month and a 6% decrease from December 2023.
Nationwide, lenders started the foreclosure process on 253,306 properties in 2024, a 6% decrease from 2023 but still up 174% from 2021.
Despite this, foreclosure starts remain significantly lower than in previous years, including the peak of over two million in 2009.
Bank repossessions, or REOs, also continued their downward trend, with 36,505 properties repossessed in 2024, down 13% from the previous year and 97% from the 2010 peak of 1.05 million. California, Illinois, Pennsylvania, Michigan, and Texas experienced the highest numbers of REOs.
States with the highest foreclosure rates in 2024 included: Florida, New Jersey, and Nevada. In large metro areas, Lakeland, FL, Atlantic City, NJ, and Columbia, SC saw the highest foreclosure rates.
The average time to complete a foreclosure slightly decreased to 762 days in Q4 2024, reflecting a 6% drop from the previous quarter, but a 6% increase from the same period in 2023.
With foreclosure activity on the decline, what do you think the future holds for the housing market? Share your perspective in the comments.
