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National Foreclosure Rates See Seasonal Decline

As the winter months approach, the real estate landscape in the United States is entering a typical seasonal ebb, reflected in the latest data from ATTOM's November 2024 U.S. Foreclosure Market Report. The report reveals a reduction in foreclosure activity across the country, indicating a potential shift in real estate trends amid economic pressures.

In November 2024, a total of 29,390 properties experienced some form of foreclosure filing—exemplifying a 9% decrease compared to the previous year and a 5% drop from October. This reduction can be attributed to various seasonal influences, setting the stage for what might be anticipated as a complex year ahead in 2025.

Highlights from the Foreclosure Market Report

Rob Barber, the CEO of ATTOM, noted, "The slight decline in U.S. foreclosure activity during November most likely reflects the seasonal ebb we often see this time of year." Despite the downturn in filings, regions such as Nevada, Florida, and Connecticut continue to grapple with higher rates of foreclosure, suggesting uneven recovery across different states.

Foreclosure Rates by State

According to the data, one in every 4,795 housing units nationwide had a foreclosure filing in November 2024. The states with the highest foreclosure rates were:

• - Nevada: 1 in every 2,941 housing units
• - Florida: 1 in every 3,047 housing units
• - Connecticut: 1 in every 3,210 housing units
• - Maryland: 1 in every 3,535 housing units
• - Indiana: 1 in every 3,567 housing units

Among metropolitan areas with populations exceeding 200,000, the highest foreclosure rates were seen in Modesto, CA (1 in every 1,890 housing units) and Reading, PA (1 in every 2,133 housing units). Major cities like Cleveland, Philadelphia, and Miami also exhibited troubling trends, with foreclosure filings affecting one in every 2,385, 2,414, and 2,551 housing units, respectively.

Foreclosure Starts and Completed Foreclosures

While foreclosure starts in November 2024 decreased by 3% since last month and 10% compared to last year, it remains critical to note that lenders initiated foreclosure proceedings on 20,231 properties. This indicates that lenders in states such as Texas, Florida, and California continue to navigate considerable demand for foreclosure resolutions.

Additionally, completed foreclosures—properties repossessed by lenders—increased by 5% from the previous month and 21% year-over-year, with California seeing the highest figures in this category (402 completed foreclosures).

Looking Ahead: Economic Pressure on Foreclosure Trends

As the economy faces various pressures, it remains crucial to keep a close watch on the evolving situation. The data suggests that while November saw a seasonal decline, the looming uncertainty of economic conditions in the upcoming year could influence a rebound in foreclosure activity. In particular, states like Nevada, Florida, and Connecticut might see a continued rise in rates if economic conditions do not stabilize.

In recognizing these dynamics, consumers, lenders, and policymakers alike will need to strategize effectively in navigating the complexities of the foreclosure market as we head into the new year. ATTOM’s extensive data management and analytics will remain essential resources in tracking these developments and understanding their implications on a national scale.