Foreclosure activity subsided in 2024. Is it a sign of housing market stability? by Sarah Wolak for HousingWire

HousingWireHousingWire

Attom,-which-shows-declines-over-the-past-year-in-the-number-of-homes-repossessed-by-lenders (1)

Attom‘s year-end 2024 foreclosure report revealed that 322,103 properties in the U.S. had some type of foreclosure filing — default notices, scheduled auctions or bank repossessions — last year. The data solutions company also reported that in fourth-quarter 2024, one in every 1,671 properties had a foreclosure filing.

Attom also noted that foreclosure filings were down 10% from 2023, down 1% from 2022 and down 35% from pre-pandemic levels in 2019. Last year’s filings were also down 89% from a peak of nearly 2.9 million in 2010, when the housing market was recovering from the Great Recession.

The 322,000 units flagged in 2024 represented 0.23% of all U.S. housing units, which is down slightly from 0.25% in 2023.

“The continued decline in foreclosure activity throughout 2024 suggests a housing market that may be stabilizing, even as economic uncertainties persist,” Attom CEO Rob Barber said in a statement. “This year’s data points to foreclosure trends potentially returning to more predictable levels, offering some clarity for industry professionals, investors, and homeowners.

“While foreclosure filings remain a critical metric for understanding market health, current trends may point to a more balanced landscape, potentially shaped by careful lending practices and ongoing homeowner resilience.”

Lenders started the foreclosure process on 253,306 properties in 2024, 6% less than in 2023. But the figure for 2024 was up 74% from 2021.

California saw the greatest number of foreclosure starts among all states at 29,529. It was followed by Florida (29,239) and Texas (28,946).

But Florida was the state with the highest foreclosure rate in 2024 as one in every 267 housing units had a filing. It was followed closely by New Jersey, Nevada, Illinois and South Carolina.

Lenders repossessed 36,505 properties through foreclosures (REOs) in 2024, down 13% from 2023. Last year’s REO measurement was down 97% from a peak of more than 1 million in 2010 following the Great Recession.

The average time to foreclose decreased between the third and fourth quarters but increased on an annual basis in 2024. U.S. properties foreclosed upon in Q4 2024 had been in the process for an average of 762 days, a 6% decrease from the previous quarter but a 6% increase from a year ago.

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