Data & Analytics

Home Prices In Opportunity Zone Redevelopment Areas Fall During Q4

by ATTOM Team
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Drop-off Matches Broader Nationwide Downturn By ATTOM Staff ATTOM, a leading curator of land, property, and real estate data, released its fourth-quarter 2022 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017 (see full methodology below). In this report, ATTOM looked at 4,119 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the fourth quarter of 2022. The report found that median single-family home and condo prices decreased from the third quarter of 2022 to the fourth quarter of 2022 in 56% of Opportunity Zones around the country and went down at least 5% in almost half. Those declines closely paralleled drops in neighborhoods outside the zones as prices fell across the broader U.S. housing market during the second half of 2022 following a decade of almost continuous growth. However, some signs emerged during the fourth quarter revealing that Opportunity Zone markets were withstanding the national market retreat better than other neighborhoods, just as they outperformed nationwide increases by some measures during the boom period. For example, larger portions of Opportunity Zones saw typical values rise by at least 10% both quarterly and annually compared to the rest of the nation during the last few months of 2022. In yet another ongoing sign of strength, median values were still up year over year in almost the same portion of Opportunity Zones as elsewhere around the country. “Home values inside Opportunity Zones are falling. But, on balance, they aren’t dropping any faster than in more well-off neighborhoods around the country,” said Rob Barber, CEO for ATTOM. “By a couple of metrics, they are even doing a little better. That speaks to the continued strength of Opportunity Zone housing markets and their potential allure for investors who still want to take advantage of the program’s tax breaks even in the current uncertain economic environment.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. Without a doubt, typical home values in Opportunity Zones remained well below those in most other neighborhoods around the nation in the fourth quarter of 2022. Median fourth-quarter prices fell beneath the nationwide median of $321,500 in 79% of Opportunity Zones. That was about the same portion as in earlier periods over the past year. In addition, median prices were less than $200,000 in 53% of the zones during the fourth quarter of 2022, also about the same as in earlier periods. Considerable price volatility also continued in Opportunity Zones, as median values either dropped or increased from the third to the fourth quarter of 2022 by at least 5% in more than three-quarters of zones. That likely reflected the small number of sales in many zones. Still, the fourth-quarter price trends, while down, continued a pattern of Opportunity Zoneslargely keeping pace with the national market despite their location in some of the country’s most distressed communities. Over the past few years, price trends inside the zones matched or even bested nationwide patterns. That happened as a combination of rock-bottom home-mortgage interest rates and a historically small supply of homes for sale pushed up demand and prices throughout the U.S. As buyers with more-limited resources were priced out of many areas, they likely turned to lower-priced locations, including Opportunity Zones. Home prices have dipped in most of the country since the middle of 2022 as higher mortgage rates and consumer price inflation, combined with a faltering stock market and other forces, have cut into what buyers can afford. But the ongoing tight supply for homes for sale could help Opportunity Zones withstand steeper drop-offs. “These areas targeted for redevelopment tax breaks may be less vulnerable to taking a big hit if the market keeps dropping because they are still some of the most affordable markets,” Barber added. “The Spring buying season should say a lot about whether they can maintain their strength.” High-level findings from the report Median prices of single-family houses and condominiums declined from the third quarter of 2022 to the fourth quarter of 2022 in 2,116 (56%) of the Opportunity Zones around the U.S. with sufficient data to analyze, while increasing or staying the same in 44%. Medians were still up from the fourth quarter of 2021 to the same period last year in 2,414 (63%) of those zones. Both of those trends roughly followed national patterns. By comparison, median prices decreased from the third to the fourth quarter of 2022 in 58% of census tracts outside of Opportunity Zones, while remaining up annually in 65%. (Among the 4,119 Opportunity Zones included in the report, 3,801 had enough data to generate usable median-price comparisons from the third quarter to the fourth quarter of 2022; 3,862 had enough data to make comparisons between the fourth quarter of 2021 and the fourth quarter of 2022). In addition, measured year over year, median home prices remained up at least 10% in the fourth quarter of 2022 in 1,738 (45%) of Opportunity Zones with sufficient data. Prices rose that much during that time period in 41% of other census tracts throughout the country. Of the 4,119 zones in the report, 1,481 (36%) had median prices in the fourth quarter of 2022 that were less than $150,000. That was down from 39% of those zones a year earlier. Another 697 zones (17%) had medians in the fourth quarter of last year ranging from $150,000 to $199,999. Median values in the fourth quarter of 2022 ranged from $200,000 to $299,999 in 934 Opportunity Zones (23%) while they topped the nationwide fourth-quarter median of $321,500 in 856 (21%). The Midwest continued in the fourth quarter of 2022 to have the largest portion

U.S. Foreclosure Activity Doubles Annually

by ATTOM Team
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Foreclosure Starts Up from 2021, While Foreclosure Completions Decline by ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its Year-End 2022 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 324,237 U.S. properties in 2022, up 115% from 2021 but down 34% from 2019, before the pandemic shook up the market. Foreclosure filings in 2022 were also down 89% from a peak of nearly 2.9 million in 2010. Those 324,237 properties with foreclosure filings in 2022 represented 0.23% of all U.S. housing units, up slightly from 0.11% in 2021, but down from 0.36% in 2019 and down from a peak of 2.23% in 2010. “Eighteen months after the end of the government’s foreclosure moratorium, and with less than 5% of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures.” ATTOM’s year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 3,000 counties nationwide, accounting for more than 99% of the U.S. population — also available for license or customized reporting. The report also includes new data for December 2022, showing there were 30,822 U.S. properties with foreclosure filings, up less than 1% from the previous month but up 72% from a year ago. Bank repossessions decrease 70% since 2019 Lenders repossessed 42,854 properties through foreclosures (REO) in 2022, up 67% from 2021 but down 70% from 2019 (143,955) and down 96% from a peak of 1,050,500 in 2010. States that saw the greatest number of REOs in 2022 included: » Illinois (5,518 REOs) » Michigan (3,669 REOs) » Pennsylvania (2,741 REOs) » New York (2,405 REOs) » California (2,223 REOs) Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2022 included: » Chicago, Illinois (3,545 REOs) » Detroit, Illinois (2,135 REOs) » New York, New York (1,656 REOs) » St. Louis, Missouri (1,395 REOs) » Philadelphia, Pennsylvania (1,302 REOs) “Unlike foreclosure activity during the Great Recession, the majority of homes in foreclosure are not being repossessed by lenders,” Sharga noted. “Our recent homeowner equity report shows that 93% of borrowers in foreclosure today have positive equity, which they appear to be leveraging in order to avoid a foreclosure by refinancing their mortgage or selling the property at a profit. It seems likely that this is a trend that will continue in 2023.” Foreclosure starts on the rise nationwide Lenders started the foreclosure process on 248,170 U.S. properties in 2022, up 169% from 2021 but down 26% form 2019 and down 88% from a peak of 2,139,005 in 2009. States that saw the greatest number of foreclosure starts in 2022 included: » California (27,269 foreclosure starts) » Texas (23,151 foreclosure starts) » Florida (22,968 foreclosure starts) » Illinois (16,941 foreclosure starts) » Ohio (13,469 foreclosure starts) Counter to the national trend, five states saw an increase in foreclosure starts from 2019. They included: » Indiana (up 81%) » Michigan (up 10%) » Idaho (up 8%) » Colorado (up 2%) » Minnesota (up less than 1%) Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2022, included: » New York, New York (15,821 foreclosure starts) » Chicago, Illinois (14,360 foreclosure starts) » Los Angeles, California (8,185 foreclosure starts) » Philadelphia, Pennsylvania (7,286 foreclosure starts) » Miami, Florida (7,090 foreclosure starts) Illinois, New Jersey and Delaware post highest state foreclosure rates in 2022 States with the highest foreclosure rates in 2022 were: » Illinois (0.49% of housing units with a foreclosure filing) » New Jersey (0.45%) » Delaware (0.40%) » Ohio (0.38%) » South Carolina (0.37%) Rounding out the top 10 states with the highest foreclosure rates in 2022, were: » Nevada (0.34%) » Florida (0.33%) » Indiana (0.30%) » Maryland (0.27%) » Michigan (0.26%) Cleveland, Jacksonville, and Atlantic City post highest metro foreclosure rates in 2022 Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2022 were: » Cleveland, Ohio (0.70% of housing units with a foreclosure filing) » Jacksonville, North Carolina (0.58%) » Atlantic City, New Jersey (0.58%) » Columbia, South Carolina (0.55%) » Chicago, Illinois (0.53%) Metro areas with a population greater than 1 million, including Cleveland, Ohio and Chicago, Illinois, that had the highest foreclosure rates in 2022, were: » Philadelphia, Pennsylvania (0.43%) » Las Vegas, Nevada (0.42%) » Jacksonville, Florida (0.42%) Average time to foreclose decreases quarterly and annually U.S. properties foreclosed in the fourth quarter of 2022 had been in the foreclosure process an average of 852 days, a 4% decrease from the previous quarter and 9% decrease from a year ago. States with the longest average time to foreclose in Q4 2022 were: » Hawaii (2,546 days) » New Jersey (2,041 days) » Louisiana (1,925 days) » New York (1,828 days) » Pennsylvania (1,692 days) Q4 2022 Foreclosure Activity High-Level Takeaways There was a total of 90,715 U.S. properties with foreclosure filings in Q4 2022, down 2% from the previous quarter but up 61% from a year ago. Nationwide in Q4 2022, one in every 1,549 properties had a foreclosure filing. States with the highest foreclosure rates in Q4 2022 were: » Illinois (one in every 724 housing units with a foreclosure filing) » Delaware (one in every 848 housing units) » New Jersey (one in every 860 housing units) » South Carolina (one in every 950 housing units) » Ohio (one in every 1,035 housing units) December 2022 Foreclosure Activity High-Level Takeaways Nationwide in December 2022, one in every 4,558

How AVMs Provide Intelligent Valuations in an Uncertain Market

by ATTOM Team
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A Critical Tool for Investors to Mitigate Investment Risk and Determine ROI By ATTOM Team AVMs (automated valuation models) are found on almost every real estate site — from Zillow to Redfin. They are perfect tools for a quick property valuation, but what about their accuracy in times like these, when nobody really knows which way the market is going to go? Is inflation going to continue to slow the rise in property prices or is low inventory going to push them higher? Do these AVMs consider macroeconomic or critical local economic factors? While most AVMs consider the usual data points like comps and property characteristics, many fail to consider the macro environment or the smaller details, like the fact that a home has not been renovated in twenty years and is decked out with outrageous floral wallpaper and shagpile carpets. So how do you reliably depend on an AVM when making investment decisions? Real estate professionals generally use AVMs to more accurately price properties and to aid in negotiations. It is an essential tool in real estate investment decision making. They also may use AVMs when deciding how to structure a deal (should they waive the appraisal contingency, for instance?) and in marketing their services and properties. Since real estate is a highly local profession, having detailed and granular valuation data can be a huge advantage in many ways for these professionals. Valuations in Volatile Markets The more volatile the market, the harder it is to value a home or to price it well. Take today’s real estate market as an example, where there are so many uncertain macro forces affecting a property’s valuation. A look at the most recent nationwide data shows the median price of $339,815 in the third quarter of 2022 was down 2.7% from $349,266 in the second quarter of 2022, but still up 9.4% from $310,500 in the third quarter of last year. Two diametric macro forces are currently at play in the real estate market. Rapid inflation is causing property prices to slow because high interest rates are making mortgages expensive. But, at the same time, housing inventory remains low. It is a complex macro environment, unlike any we have seen in several years and one that investors and real estate agents are having difficulty navigating. The hardest part of a property valuation in the current climate is ascertaining exactly where the market is at any one time. Property valuations based on a sellers’ market of just a few months ago are particularly unreliable, the market could slow, stagnate, or reverse course at any time. Property valuations in volatile markets are much less complex when leveraging valuation intelligence based on data — the exact type of data utilized in AVMs (automated valuation models). These models use property, environment, and macroeconomic data, combined with predictive analytic algorithms, to produce accurate valuations, even in current market conditions. An AVM provides a more realistic perspective to property valuation. A Winning Team While a data-based approach to valuations can prove more accurate, not all AVMs are the same. AVMs are software-based tools that determine property values using mathematical or statistical modeling combined with a variety of data. However, the valuations produced by an AVM, are only as good as the data being used. If the data is outdated or inaccurate, the valuation will be outdated and inaccurate also. Almost every AVM will use data points such as tax assessor value, property features, and sales history for similar properties in the area, but many are not equipped to consider factors like the condition of the property, recent renovations, or even the proximity of comparable properties. Some will include outliers in the comp data —properties that sell for extremely high or low prices and skew the results — while others will not. Of course, the best valuations use a combination of AVMs and human appraisal. The AVM can place a check on errors and omissions from the real estate appraiser, and the real estate appraiser can make sure the valuation reflects the condition and aesthetics of the home and its salability. In the absence of a paid appraiser, AVMs offer fast, accurate results to mitigate investment risk, determine ROI and inform purchasing decisions. How Do You Find the Most Accurate AVM? AVMs that utilize data outside of public records information and consider the most current and local transactions have a higher degree of accuracy. ATTOM’s AVM relies on neighborhood boundaries and recent sales transaction data, which always contains the most up to date information available. This helps to capture the micro-location deviations in the local real estate market, in order to provide a more well-rounded individual property valuation. The valuation differs from property to property depending on which is likely to yield the best results: statistical models, market metrics derived from small clusters of similar properties, or ensemble (value blending) approaches. AVMs that are based on a robust set of data points, updated weekly, and go through a number of modeling techniques are generally quite accurate. At ATTOM, 70% of the valuations are within 10% of a home’s eventual sale price, and 82% are within 20%. Over a recent three-month period, the median difference between valuation and sale price was 3.5%. Some AVMs, similar to ATTOM’s, will also provide both minimum and maximum valuations and a unique confidence score for each property. This allows users to get a big-picture view of a property’s value, as well as any potential for variance. Rental AVMs Rental AVMs are another critical tool for investors. These are best utilized when looking to evaluate the potential profits, return on investment, and viability of new investment properties. Investors may also use a rental AVM for analytics purposes, often to identify trends in specific geographic areas and markets. ATTOM has recently introduced a proprietary rental AVM, yet another valuation tool for investors and real estate agents. The rental AVM is a valuable tool because it estimates the potential income for rental properties under current market

Home Affordability Worsens Across U.S. During Q4 2022

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Major Home-Ownership Costs Consume 32% of Average National Wage By ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its fourth-quarter 2022 U.S. Home Affordability Report showing that median-priced single-family homes and condos are less affordable in the fourth quarter of 2022 compared to historical averages in 99% of counties across the nation with enough data to analyze — far above the 68% of counties that were less affordable in the fourth quarter of 2021. The report further shows that the portion of average wages nationwide required for typical major home-ownership expenses has risen to 32.3% this quarter. That figure — considered unaffordable by traditional lending standards — is up from 29.6% in the third quarter of this year and from 23.8% a year ago. It now stands at its highest point since 2007. Affordability has worsened due to rising home-mortgage rates in the U.S., which offset the benefits of rising wages and a recent decline in home values. Higher loan rates in 2022 have pushed up major ownership expenses on median-priced homes by 10% this quarter even as the median price of single-family homes and condos nationwide dipped 3% this quarter, following a 4% drop over the Summer. But lower prices and a 1% gain in average wages have been too little to make up for the impact of these increased mortgage payments. “Prospective homebuyers — especially first-time buyers — can’t seem to catch a break,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “For the past two years home prices have appreciated in double digits — 15 to 20% a year in some markets. Now that home prices have plateaued and even declined in some markets, buyers are faced with mortgage rates that have doubled, making home purchases even less affordable.” The report determined affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced single-family home, assuming a 20% down payment and a 28% maximum “front-end” debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics. Compared to historical levels, median home prices in 577 of the 581 counties analyzed in the fourth quarter of 2022 are less affordable than in the past. The latest number is up slightly from 572 of the same group of counties in the third quarter of 2022. But it is well up from 393 in the fourth quarter of 2021 and just 181, or less than a third, two years ago. Meanwhile, major home-ownership expenses on typical homes are unaffordable to average local wage earners during the fourth quarter of 2022 in 427, or about three-quarters, of the 581 counties in the report, based on the 28% lending guideline. Counties with the largest populations that are unaffordable in the fourth quarter are: » Los Angeles County, CA » Maricopa County (Phoenix), AZ » San Diego County, CA » Orange County, CA (outside Los Angeles) » Kings County (Brooklyn), NY The most populous of the 181 counties where major expenses on median-priced homes remain affordable for average local workers in the fourth quarter of 2022 are: » Cook County (Chicago), IL » Harris County (Houston), TX » Wayne County (Detroit), MI » Philadelphia County, PA » Cuyahoga County (Cleveland), OH Interest rates have more than doubled this year to almost 7%, inflation remains near 40-year highs and the stock market has declined. All those forces have helped drive down prices after a decade of gains. At this point, prices haven’t declined enough to make up for rising mortgage costs. But affordability could shift back in favor of home seekers if mortgage rate hikes ease or if prices drop further. “There is a scenario where affordability improves as we move through 2023,” Sharga added. “Wage growth continues to be strong; home prices appear to have stabilized and are even going down slightly; and mortgage rates may have peaked for this cycle and could go down gradually next year. If those conditions remain in place, the affordability picture is much brighter for a lot of potential buyers.” Home prices remain up at least 5% annually in two-thirds of U.S. Despite the recent decline in the U.S. housing market, median single-family home and condo prices in the fourth quarter of 2022 remain up by at least 5% over the fourth quarter of 2021 in 361, or 63%, of the 581 counties included in the report. However, typical values have dropped from the third to the fourth quarter in 463, or 80%, of those counties. That has contributed to a nationwide 3% decrease in the median home price, from $335,000 in the third quarter of 2022 to $325,000 in the fourth quarter. The median is now down 6.9% from the peak of $349,000 in the second quarter of this year. Among the 48 counties in the report with a population of at least 1 million, the biggest year-over-year gains in median sales prices during the fourth quarter of 2022 are in: » Collin County (Plano), TX (up 34%) » Hillsborough County (Tampa), FL (up 18%) » Miami-Dade County, FL (up 17%) » St. Louis County, MO (up 16%) » Palm Beach County (West Palm Beach), FL (up 16%) Counties with a population of at least 1 million where median prices have dropped most, year-over-year, during the fourth quarter of 2022 are: » Philadelphia County, PA (down 13%) » New York County (Manhattan), NY (down 4%) » Honolulu County, HI (down 4%) » Bronx County, NY (down 1%) » Santa Clara County (San Jose), CA (down 1%). Portion of wages needed for home ownership increases throughout the U.S. With mortgage rates rising close to 7%, the portion of average local wages consumed by major expenses on median-priced, single-family homes and condos has increased from the third to the fourth quarter of 2022 in 97% of the 581 counties

Artificial Intelligence

by Steve Gaenzler
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AI Enables Personalized Property Intelligence for Investors By Steve Gaenzler Historic inflation, a doubling of mortgage rates, and general uncertainty about the direction of the real estate market have made investors cautious about the future and concerned about risk in their portfolios. The U.S. housing market is experiencing something between a normalization and a correction. After skyrocketing in 2021 and early 2022, home price growth slowed significantly between June and September, according to homegenius Home Price Index (HPI) data released by homegenius Real Estate. But while the slowdown has been broad based, it has not been evenly distributed. Shifts in home prices vary significantly by market—with the West and Southwest seeing the biggest slowdowns in appreciation and San Francisco becoming the first major metro to register falling home prices. Geographic differences make accurate valuations a challenge at a pivotal moment when investors need maximum clarity. Fortunately, artificial intelligence (AI) can help solve the trickiest puzzles. Recent AI innovations in valuation technology now make it possible to generate highly personalized intelligence on properties and gain an analytical edge in fast-moving markets. Introducing Computer Vision Computer vision is a field of artificial intelligence that uses advanced machine learning to teach computers to interpret and understand the visual world. This technology has already been used for many things like autonomous vehicles, facial recognition, and medical image analysis. Computer vision is being applied to more and more use cases across different industries every day, including the real estate valuation process. By drawing on billions of digital images from cameras and videos and processing them through deep learning models, computers can be taught to accurately identify and classify the attributes and condition of a property and evaluate it against comparables in any geographic area. This type of AI attempts to mimic the abilities of an appraiser to see a property and assess its value, except AI can be faster, smarter, and may mitigate inherent human bias. Computer vision technology and AI-enabled pricing tools have a range of applications across the real estate ecosystem. For investors, it may help fine-tune investment strategies, increase return on investment (ROI) for portfolios, and make investment decisions based on personalized property intelligence: These applications work together for real estate investors and may help to mitigate risk, increase accuracy, and speed up the analytical process. As the U.S. real estate market enters a period of uncertainty and turbulence, technologies that deliver personalized property intelligence at a macro and micro level will be increasingly valuable. Intelligent valuation solutions powered by AI image recognition and computer vision technology like homegeniusIQ from homegenius Real Estate are transforming the real estate industry and making it easier for investors to navigate the challenging market. It is all about getting the right data in hand at the right time so you have the ability to maximize the value of your portfolio and maintain a stable risk management posture. Whether deteriorating economic conditions in the near-term will be enough to overtake the underlying longer-term secular trends driving the run-up remains to be seen. But while they are waiting for a clear trend to emerge, now is a good time for investors to take stock of their portfolios and make decisions based on the most accurate analytics available.

October 2022 U.S. Foreclosure Activity

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Completed Foreclosures Increase by 18%, While Starts Remain Flat By ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its October 2022 U.S. Foreclosure Market Report, which shows there were a total of 32,376 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 57& from a year ago, but only up 2% from the prior month. Illinois, Delaware, and New Jersey had the highest foreclosure rates Nationwide one in every 4,339 housing units had a foreclosure filing in October 2022. States with the highest foreclosure rates were: » Illinois (one in every 1,779 housing units with a foreclosure filing) » Delaware (one in every 2,178 housing units) » New Jersey (one in every 2,305 housing units) » South Carolina (one in every 2,711 housing units) » Nevada (one in every 2,755 housing units) “Even though foreclosure activity continues its slow, steady increase since the end of the government’s moratorium, we’re still far below normal levels,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “October foreclosure activity was about 59% of pre-pandemic numbers, and at its current pace foreclosures probably won’t be back to historically normal levels until sometime around mid-2023.” Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2022 were: » Fayetteville, NC (one in every 1,135 housing units with a foreclosure filing) » St. Louis, MO (one in every 1,177 housing units) » Jacksonville, NC (one in every 1,203 housing units) » Cleveland, OH (one in every 1,624 housing units) » Spartanburg, SC (one in every 1,729 housing units) Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in October 2022, including St. Louis, MO and Cleveland, OH were: » Las Vegas, NV (one in every 2,062 housing units) » Riverside, CA (one in every 2,127 housing units) » Chicago, IL (one in every 2,154 housing units) Foreclosure completion numbers increase 18% from last month Lenders repossessed 4,156 U.S. properties through completed foreclosures (REOs) in October 2022, up 18% from last month and up 37% from last year. “Repossessions in October were just under 31% of where they were in October of 2019,” Sharga added. “This suggests that borrowers in foreclosure have been able to sell their homes prior to the foreclosure auction, and that a higher percentage of properties at the auctions are being sold to third-party buyers. A new flood of REO homes seems increasingly unlikely to happen anytime soon.” States that had the greatest number of REOs in October 2022, included: » Illinois (1,100 REOs) » New York (273 REOs) » Pennsylvania (251 REOs) » Michigan (239 REOs) » California (194 REOs) Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in October 2022 included: » St. Louis, MO (841 REOs) » Chicago, IL (220 REOs) » New York, NY (147 REOs) » Philadelphia, PA (124 REOs) » Detroit, MI (98 REOs) California, Texas, and Florida had the greatest number of foreclosure starts Lenders started the foreclosure process on 21,829 U.S. properties in October 2022, down less than 1% from last month but up 103% from a year ago. States that had the greatest number of foreclosure starts in October 2022 included: » California (2,594 foreclosure starts) » Texas (1,901 foreclosure starts) » Florida (1,528 foreclosure starts) » New York (1,362 foreclosure starts) » Illinois (1,300 foreclosure starts) Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in October 2022 included: » New York, NY (1,655 foreclosure starts) » Chicago, IL (1,107 foreclosure starts) » Los Angeles, CA (816 foreclosure starts) » Philadelphia, PA (788 foreclosure starts) » Miami, FL (583 foreclosure starts)