US foreclosure rates surge in Q3 2023
Economy rebounds, but foreclosure filings tell a different story.
Amid a turbulent economic landscape, the US has witnessed a significant uptick in foreclosure filings in the third quarter.
A new ATTOM report paints a concerning picture, with foreclosure filings reaching 124,539, which marks a 28% surge from the last quarter and a significant 34% rise year-over-year. Delving deeper into the monthly data, September alone saw an 11% increase in foreclosure filings, up to 37,679 properties.
“The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing,” ATTOM’s CEO Rob Barber said. “But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings.”
Barber also attributed the higher foreclosure rate to pending filings finally processing. “Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges,” he said.
Several states experienced spikes in foreclosure starts for Q3 2023. North Carolina led the pack with a 53% increase, followed closely by Louisiana at 47%. Pennsylvania, Alabama, and Nevada also reported substantial annual hikes of 24%, 18%, and 16%, respectively.
On the metropolitan front, New York City reported the highest number of foreclosure starts in Q3 2023, with 4,514, followed by Chicago (2,584), Houston (2,279), Los Angeles (2,273), and Philadelphia (2,104).
However, not all cities followed the national trend. Some metropolitan areas with populations exceeding one million reported declines in foreclosure starts for the same quarter. Salt Lake City led this group with a 74% decrease, while Chicago, Kansas City, Columbus, and Milwaukee also noted reductions of 35%, 34%, 22%, and 21%, respectively.