Foreclosure Forecast for 2020
With the calendar turning to 2020, there's no better time to learn more about the foreclosure market with an eye toward understanding what it may bring over the next 12 months
MIAMI, December 6, 2019 (Newswire.com) - The following is an analysis of the 2019 foreclosure market and a 2020 forecast from BankForeclosuresSale.com.
While there is no way of predicting the future, especially when it comes to the real estate market, past trends provide an inside look at what to expect in the near term.
According to ATTOM Data Solutions, Q3 2019 foreclosure activity decreased 19% from 2018. This marks the lowest level since Q2 2005.
The company noted a total of 143,105 U.S. properties with foreclosure filings in the third quarter.
Todd Teta, CPO at ATTOM Data Solutions, added the following in the company’s U.S. Foreclosure Market Report:
“Foreclosure activity continues to decline across the country, which is a good sign that the housing market and the broader economy remain strong – and that the lending excesses that helped bring down the economy during the Great Recession remain a memory.”
There is no denying the impact of these numbers on the housing market and economy as a whole, but that doesn’t mean that there isn’t another side of the story.
Some states have experienced an increase in foreclosure rates in 2019, thus, giving them cause for concern as the calendar flips to the new year.
These States Saw an Increase
Even with foreclosure rates dropping as a whole, some states were not as lucky. For example, these states saw an increase in the third quarter of 2019:
- Montana: 33%
- Georgia: 32%
- Washington: 16%
- Louisiana: 15%
- Michigan: 12%
Furthermore, many large metropolitan statistical areas throughout the country experienced foreclosure rate growth during the third quarter:
- Atlanta, GA: 37%
- Columbus, OH: 27%
- San Antonio, TX: 24%
- Portland, OR: 22%
- Tucson, AZ: 21%
What Will 2020 Bring?
If 2019 is any indication, the first quarter of 2020 will show another decrease in the nation’s foreclosure rate.
However, much the same as in 2019, some states and cities will suffer more than others.
According to Simon Campbell of BankForeclosuresSale.com – an online service that helps consumers find foreclosed homes for up to 60 percent below market value – there will be opportunities across the country to invest in foreclosures.
“Even when foreclosure rates dip – which is a good thing on many fronts – there are still opportunities for those interested in investing. In 2020, there will remain cities and states that have more available properties than others. For example, it makes sense to believe that New Jersey, Illinois, and Florida will continue to have some of the highest foreclosure rates in the country.”
Just the same, some cities never seem to escape a foreclosure rate increase, and that trend should remain in the new year.
“Last year, Atlantic City, New Jersey, and Rockford, Illinois, had some of the highest foreclosure rates in the country,” Campbell added. “We don’t yet know how these areas will perform in 2020, but I’d guess that you’ll see these three cities in a similar position during Q1 and possibly beyond.”
Anyone interested in bank-owned properties can find great foreclosure listings at bankforeclosuressale.com.