Foreclosure activity slowed slightly in November 2024, reversing the trend of rising foreclosures in October. But this decline may only be a seasonal phenomenon, according to the real estate data provider Atom.
On Tuesday Atom brought his November 2024 US Foreclosure Market Report. The report includes the total number of properties nationwide for which at least one foreclosure filing has been filed. Attom took into account the status of homes in default, at auction and owned real estate (REO), along with foreclosures that had actually been completed.
The monthly report showed that bankruptcy filings were filed on 29,390 properties in November. That represents a decline of 3% from October’s total of 30,784 and a decline of 9% from November 2023.
Rob Barber, CEO of Attom, urged the mortgage industry to remain vigilant, describing the decline as a common seasonal event.
“The slight decline in US foreclosure activity in November most likely reflects the seasonal ebb we often see this time of year,” Barber said in a statement. “While bankruptcy filings are declining both month over month and year over year, the data highlights areas of the country, such as Nevada, Florida and Connecticut, where foreclosures remain relatively high. As we move into 2025, we will be closely monitoring how economic pressures and market dynamics could impact a potential recovery in activity.”
Nevada maintained its status as the state with the highest foreclosure rate, as one in every 2,941 homes in the Silver State filed. Florida (one in 3,047) moved to No. 2, followed by Connecticut (one in 3,210), Maryland (one in 3,535) and Indiana (one in 3,567). New Jersey, California and South Carolina – which had some of the highest rates in October – dropped from the top five. Nationally, one in 4,795 units had a bankruptcy filing last month.
Attom analyzed bankruptcy rates in 224 metropolitan areas with a population of 200,000 or more. As in October, California led the way, as Modesto (No. 1), Bakersfield (No. 3), Riverside (No. 4) and Chico (No. 5) were among the five metros with the highest bankruptcy rates. Reading, Pennsylvania, took second place.
Riverside (one filing for every 2,207 homes) also had the highest foreclosure rate among metro areas with more than 1 million residents. Cleveland (one in 2,385) ranked No. 2, followed by Philadelphia (one in 2,414), Miami (one in 2,551) and Las Vegas (one in 2,645).
Foreclosures – meaning lenders have started the process but have not yet taken possession of the home – totaled 20,231 in November. That’s down 3% from October and down 10% compared to November 2023. Texas (2,542) had the most starts, followed by California (2,239), New York (1,167) and Pennsylvania (844).
