ATTOM's Foreclosure Market report found a 10% increase in foreclosure filings in 2023 compared to 2022. Default notices, scheduled auctions, and bank repossessions were reported on 357,062 U.S. properties in 2023, marking a significant uptick from previous years. However, despite the increase, foreclosure activity remains significantly lower than during the 2008 housing crisis.
Foreclosure filings in 2023 accounted for 0.26% of all U.S. housing units, a slight increase from 0.23% in 2022 but substantially lower than the 0.36% recorded in 2019. The report emphasizes that the housing market is undergoing a correction rather than a crisis.
ATTOM's CEO Rob Barber suggested that this correction provides an opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight.
“Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility,” Barber said.
Foreclosure starts nationwide increased by 9% in 2023, with states like California, Texas, Florida, New York, and Illinois seeing the highest numbers. Notably, six states experienced an increase in foreclosure starts since 2019, including Indiana, Idaho, Michigan, Nevada, and Minnesota.
Bank repossessions, on the other hand, declined by 2% from 2022, with Illinois, Michigan, Pennsylvania, California, and New York having the highest numbers of REPOs in 2023.
New Jersey, Illinois, Delaware, Maryland, and Ohio were the states with the highest foreclosure rates in 2023. Among metropolitan areas with over 200,000 residents, Cleveland, Atlantic City, Lakeland, Columbia, and Fayetteville had the highest foreclosure rates.
The report also highlights a decrease in the average time to complete foreclosures, with U.S. properties foreclosed in the fourth quarter of 2023 taking an average of 720 days, a 7% decrease from the previous quarter and a 16% decrease from the previous year.
