NYC foreclosures fall to lowest level of year

By Adam Pincus | December 04, 2008 03:25PM

November home foreclosures in New York City fell to their lowest level this year as filings declined last month in every borough but the Bronx, said in a report released today.

But the improvement is likely temporary and the number of foreclosures is expected to rise again as home prices fall, said Bill Staniford, PropertyShark’s CEO.

Foreclosures fell 23 percent to 258 in November compared with 336 filed in October, and were at the same level as the 258 foreclosures filed in November 2007, the data showed. The report defined a foreclosure as a property scheduled for its first foreclosure auction within the month.

The volume has declined 35 percent since its high of 397 filed in September of this year.

Staniford attributed the slowdown to a three-month statewide moratorium that expired December 1, on subprime foreclosures.

He said the majority of subprime mortgages have been processed in the city, and predicted that the next batch of foreclosures will be among homeowners who have lost their jobs or whose home values are lower than their mortgages.

“These numbers were artificially deflated, and I believe we will see a bounce back” in New York City, he said. “The numbers at first sight bring a little hope, but I think it is misleading. We are in for more significant downside.”

Queens led the five boroughs had 172 foreclosures; Staten Island had 47; Brooklyn had 21; the Bronx had 13; and Manhattan had 5. Only the Bronx recorded more foreclosures in November, with one more than the previous month, according to the data.

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