Nationwide home foreclosures tick up for first time in 3 years: report

In July, big cities like Miami and LA saw new foreclosure filings rise by 20% or more

Aug.August 21, 2018 08:00 AM

(Credit: iStock)

New home foreclosure filings nationwide inched up in July, signaling the first year-over-year rise after three consecutive years of decreases.

The report from Attom Data Solutions is an indication the U.S. housing market may be nearing the end of the cycle, and that home prices will begin to fall, experts say.

Meanwhile, foreclosure starts are also rising sharply in some of the country’s biggest real estate markets, jumping more than 20 percent in Los Angeles and Miami, according to the report.

In L.A., foreclosures jumped 20 percent last month to 1,190; and in Miami they rose 29 percent to 1,119. In both cities, home foreclosures increase for the third consecutive month.

A total of 96 out of 219 metropolitan areas analyzed in the report, or 44 percent, posted year-over-year increases in foreclosure starts in July.

Daren Blomquist with Attom Data Solutions said “the widespread trend reflects a gradual loosening of lending over the past few years.” That loosening, he added, “is naturally resulting in higher foreclosure numbers across a diverse set of housing markets.”

Countering the trend again, however, is New York. It reported a drop of 16 percent in new foreclosure filings — the same Attom report in June showed New York had a 19 percent dip — while Chicago reported a decrease of 2 percent.

Blomquist said the Greater New York metro area “is still dealing with a relatively big backlog of legacy distress from the last housing bust.” That backlog is shrinking, he said, leading to a decrease in foreclosures there. But the trend could also be masking weakness showing up in more recent loans, he added.

Meanwhile, some of the foreclosure increases in certain cities, such as Houston and Miami, could be attributed to the lingering effects from Hurricane Irma and Harvey, experts said, which made it more difficult for people to meet their mortgage payments.

Houston, Detroit, Indianapolis and Jacksonville, Florida, saw the biggest rise in foreclosure filings. In those cities, foreclosure starts all increased more than 70 percent.

Related Articles

From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

Daily Digest Miami

Heir to Merck pharma fortune sells Palm Beach estate, Brookdale buys back Sawgrass Park portfolio for $80M: Daily digest

Daily Digest Miami

Ben Carson talks Opportunity Zones, top developers riff on condos vs. rentals: Daily digest

From left: Amir Korangy and Secretary of Housing and Urban Development Dr. Ben Carson

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Daily Digest Miami

Saks makes bid for Barneys, Eighty Seven Park will offer a certified botanist: Daily digest

Arden home community and Stuart Miller

Lennar picks up 50 lots in western Palm Beach County

(Credit: Getty Images)

All eyes on cranes during Hurricane Dorian

Daily Digest Miami

Edgewater Opportunity Zone site hits the market, FHA will back more condo loans: Daily digest