Foreclosure activity in 2019 tumbled 83% from its 2010 peak, and hit its lowest level since at least 2005
Foreclosure activity fell to at least a 15-year low in 2019, according to a new study.
The ATTOM Data Solutions Year-End 2019 U.S. Foreclosure Market Report found that foreclosure filings – including default notices, scheduled auctions and bank repossessions – were reported on 493,066 properties last year. That’s a 21% drop from 2018 and an 83% drop from a peak of nearly 2.9 million in 2010. Foreclosure activity in 2019 was at its lowest level since tracking began in 2005.
The 493,066 properties with foreclosure filings represented 0.36% of all US housing units, down from 0.47% in 2018 and a peak of 2.23% in 2010, according to ATTOM.
“The continued decline in distressed properties is one of many signs pointing to a much-improved housing market compared to the bad old days of the Great Recession,” said Todd Teta, chief product officer for ATTOM Data Solutions. “That said, there is some reason for concern about the potential for a change in the wrong direction, given that residential foreclosure starts increased in about a third of the nation’s metro housing markets in 2019. Nationally, the number also ticked up a bit in December. While that’s not a major worry, it’s something that should be watched closely in 2020.”
Bank repossessions have plummeted 86% since their peak in 2010, according to the study. Lenders repossessed 143,955 properties through foreclosure in 2019, down from a peak of more than 1 million in 2010. Bank repossessions in 2019 were at their lowest level as far back as data was available, 2006.
Foreclosure starts increased in 14 states, but were at a new record low nationally. Lenders started foreclosure proceedings on 335,985 properties last year, down 9% from 2018 and 84% from a peak of more than 2.1 million in 2009.
“With foreclosure inventory down and interest in that inventory up, it’s a good time for sellers with distressed inventory to sell while the sun shines,” said Daren Blomquist, vice president of market economics for Auction.com. “Foreclosure buyers still enjoy sizeable discounts below estimated market value due to the distressed nature of foreclosure inventory, but the average sales price for foreclosure auction properties sold through the Auction.com platform rose to a new record high in 2019 even as the rate of sales to third-party buyers increased.”
