IRVINE, CA -- (Marketwired) -- 07/11/13 -- RealtyTrac® (www.realtytrac.com), the leading online marketplace for real estate data, today released its Midyear 2013 U.S. Foreclosure Market Report, which shows a total of 801,359 U.S. properties with foreclosure filings -- default notices, scheduled auctions and bank repossessions -- in the first half of 2013, a 19 percent decrease from the previous six months and down 23 percent from the first half of 2012. The report also shows that 0.61 percent of all U.S. housing units (one in 164) had at least one foreclosure filing in the first six months of the year.
High-level findings from the report:
•A total of 127,790 U.S. properties had foreclosure filings in June, down 14 percent from the previous month and down 35 percent from a year ago to the lowest monthly level since December 2006 -- a six and a half year low.
•U.S. foreclosure starts in June dropped 21 percent from the previous month and were down 45 percent from a year ago to the lowest monthly level since December 2005 -- a seven and a half year low. Year to date through June, 409,491 foreclosure starts have been filed nationwide, on pace to reach more than 800,000 for the year, which would be down from 1.1 million foreclosure starts in 2012.
•Foreclosure starts in June decreased from the previous month in 38 states, including Nevada (down 84 percent), Colorado (down 62 percent), New Jersey (down 40 percent), Illinois (down 39 percent) and Florida (down 26 percent).
•Bank repossessions (REO) in June decreased 9 percent from the previous month and were down 35 percent from a year ago. Year to date through June, a total of 248,538 bank repossessions have occurred nationwide, on pace for nearly 500,000 for the year, which would be down from more than 671,000 in 2012.
•Bank repossessions in June decreased from a year ago in 34 states, but there were some notable exceptions where bank repossessions were up from a year ago, including Arkansas (up 143 percent), Oklahoma (up 103 percent), Maryland (up 74 percent), Washington (up 71 percent), New Jersey (up 33 percent), and New York (up 21 percent).
•Judicial foreclosure auctions (NFS) were scheduled for 28,296 U.S. properties in June, up less than 1 percent from May but up 34 percent from June 2012. States with substantial annual increases in scheduled judicial foreclosure auctions included New Jersey (up 103 percent), Florida (up 100 percent), Maryland (up 94 percent), New York (up 66 percent), and Illinois (up 65 percent to a 35-month high).
•Florida, Nevada, Illinois, Ohio and Georgia posted the top five state foreclosure rates for the first half of the year, while five Florida cities posted the top five metro foreclosure rates: Miami, Orlando, Jacksonville, Ocala, and Tampa.
"Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process," said Daren Blomquist, vice president at RealtyTrac. "The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion. Given the rising home prices in most of these markets, it is an opportune time for lenders to dispose of these distressed properties, either at the foreclosure auction to a third-party buyer, or by repossessing the property at the auction and subsequently selling it as a bank-owned home."
Local broker quotes from the RealtyTrac Network
•"The increase in bank repossessions in Oklahoma is due to a release of 'zombie foreclosures,' or homes where the foreclosure process has not been completed by the bank for a variety of reasons," said Sheldon Detrick, CEO of Prudential Alliance Realty in Oklahoma City and Prudential Detrick Realty in Tulsa, Okla. "This is the tail end of a long process. We are actually seeing fewer foreclosure housing listings than we've had in six years. That trend will likely continue and we will see a dramatic drop in foreclosures in the area moving forward."
•"The drop in foreclosure starts in Reno is not surprising since NODs were at a 20-month high last month," said Craig King, COO at Chase International brokerage, which covers the Reno and Lake Tahoe markets. "New laws were passed in this year's session of the Nevada legislature affecting homeowner's rights and distressed property. Lenders, Realtors, and attorneys are working to sort out these new laws, which could take some time.
"There will be a long tail on the distressed property market for several more years as there are a huge number of Nevada mortgages still underwater, but the NOD and scheduled foreclosure auction numbers have come down very substantially and will stay down from the highs," King continued. "The distressed market is a fraction of what it was at the peak, and the majority of agents have shifted their focus to the equity market."
•"The New York market is continuing to have increased sales over last year," said Emmett Laffey, CEO of Laffey Fine Homes International, covering the five boroughs of New York City and Long Island. "Even as the pending foreclosures begin to hit the market, sales most certainly will continue to be brisk due to the aggressive pricing on foreclosures. Furthermore, with mortgage rates on the rise over the last few weeks buyers will be anxious to buy and lock in their mortgage rate before they go even higher."
•"All indications point to the fact that the Nashville metro area has passed its peak in the foreclosure market, closely resembling the 2005 to 2006 sustainable rate of absorption," said Bob Parks, CEO of Bob Parks Realty in Nashville, Tenn. "The area does still have a substantial amount of shadow inventory that will hit the market at some point; however, these properties will be quickly absorbed by individual buyers returning to the area. We are seeing home prices continue to recover in the Nashville metro area and the market has showed continual gains over the past two years."
Florida, Nevada, Illinois post top state foreclosure rates in first half of 2013
Florida posted the nation's highest state foreclosure rate in the first half of the year: 1.74 percent of housing units with a foreclosure filing (one in every 58) during the six-month period -- nearly three times the national average. A total of 155,264 Florida properties had a foreclosure filing in the first six months of the year, the most of any state and up 12 percent from a year ago. In June Florida foreclosure starts (LIS) decreased 23 percent from a year ago but scheduled foreclosure auctions increased 100 percent and bank repossessions increased 14 percent during the same time period.
Despite a 58 percent month-over-month drop in foreclosure activity in June, Nevada posted the nation's second highest foreclosure rate in the first half of 2013: 1.40 percent of housing units with a foreclosure filing (one in every 71) during the six-month period. A total of 16,291 Nevada properties had a foreclosure filing in the first half of 2013, up 12 percent from the previous six months but down 21 percent from a year ago. New state legislation (AB 300) that changes the foreclosure process in Nevada took effect in June.
Illinois foreclosure activity in the first half of 2013 decreased from the previous six months and a year ago, but the state still posted the nation's third highest foreclosure rate: 1.20 percent of housing units with a foreclosure filing (one in 83) during the six-month period. In June Illinois foreclosure starts (LIS) decreased 68 percent from a year ago and bank repossessions were down 49 percent from a year ago, but scheduled foreclosure auctions increased 65 percent during the same time period to the highest monthly level since July 2010.
Ohio foreclosure activity in the first half of 2013 increased 2 percent from a year ago, helping the state post the nation's fourth highest foreclosure rate: 0.96 percent of housing units with a foreclosure filing (one in every 104). Georgia posted the nation's fifth highest state foreclosure rate during the first half of the year: 0.86 percent of housing units with a foreclosure filing (one in every 117) despite a 47 percent year-over-year drop in foreclosure activity.
Other states with foreclosure rates among the 10 highest in the first six months of 2013 were Arizona (0.81 percent of housing units with a foreclosure filing), South Carolina (0.80 percent), Maryland (0.80 percent), Washington (0.78 percent), and Indiana (0.66 percent).
Florida accounts for top five metro foreclosure rates, 12 of top 20
Miami posted the highest foreclosure rate in the first half of 2013 among metropolitan statistical areas with a population of 200,000 or more: 2.35 percent of housing units with a foreclosure filing (one in every 43) during the six-month period -- nearly four times the national average.
Four other Florida cities joined Miami to round out the top five metro foreclosure rates in the first half of 2013: Orlando at No. 2 (1.94 percent of housing units with a foreclosure filing); Jacksonville at No. 3 (1.91 percent); Ocala at No. 4 (1.85 percent); and Tampa at No. 5 (1.74 percent). Florida cities accounted for a total of 12 of the top 20 metro foreclosure rates.
Metros outside of Florida with foreclosure rates in the 20 highest nationwide were Rockford, Ill., at No. 6 (1.73 percent of housing units with a foreclosure filing); Las Vegas at No. 8 (1.59 percent); Chicago at No. 9 (1.52 percent); Akron, Ohio at No. 12 (1.32 percent); Columbus, Ohio at No. 14 (1.22 percent); Stockton, Calif., at No. 17 (1.16 percent); Atlanta at No. 18 (1.11 percent); and Cleveland at No. 19 (1.09 percent).
Foreclosure process lengthens nationwide,
U.S. properties foreclosed in the second quarter of 2013 were in the foreclosure process an average of 526 days from the initial public foreclosure notice to the completed foreclosure, up 10 percent from 477 days in the first quarter.
The average time to foreclose was 1,033 days in both New York and New Jersey -- the longest among the states. New York's timeline was down 2 percent from the previous quarter while New Jersey's timeline increased 3 percent. Other states with the longest average foreclosure timelines were Florida (907 days), Hawaii (824 days) and Illinois (817 days).
The average time to foreclose was 184 days in Virginia, the shortest of any state. Other states with average foreclosure timelines below the national average included Texas (209 days), Minnesota (239 days), Georgia (240 days), and Arizona (255 days).
Click here to learn about RealtyTrac's report methodology and to view detailed data by state.
The RealtyTrac U.S. Foreclosure Market Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.
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About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts®. RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.
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