Home foreclosures see a 'notable' increase amid ongoing cost-of-living crisis
'Mansion Global' host Katrina Campins has the latest on the real estate market on 'The Bottom Line.'
Home foreclosures saw a «notable» increase in January as Americans continue to grapple with the ongoing cost-of-living crisis.
That is according to a new report published by real estate data provider ATTOM, which found that lenders repossessed 3,954 U.S. properties in January, a 13% increase from the previous month. It marked the first monthly increase in completed foreclosures since July 2023.
Foreclosures are up just 1% from the same time one year ago.
«We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system,» said ATTOM CEO Rob Barber. «However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics.
WHY CAN'T YOU FIND A HOUSE FOR SALE?
Affordability is worsening across the country, thanks to a spike in both home prices and mortgage rates. (Andrew Caballero-Reynolds/AFP via Getty / Getty Images)
The report also indicated that there were 37,679 properties with foreclosure filings – which includes default notices, scheduled auctions and bank repossessions – in January, up 10% from the previous month and up 5% from 2023.
The increase was even greater in some states. In Michigan, completed foreclosures jumped 200%, while they rose 47% in Minnesota and 43% in California. Pennsylvania saw a 36% increase, and Missouri a 34% increase.
Although foreclosures are on the rise, they remain well below the levels recorded during the 2008 financial crisis.
But the problem could soon get worse as high home prices, mortgage rates and property taxes bite
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