Johnson City MSA foreclosure filings up for second straight month

Foreclosure filings in the Johnson City MSA area increased by 40.9% in February when compared to the same month last year.  At the same time, filings in the Kingsport-Bristol MSA declined by 44.4% during the same period according to RealtyTrac’s February Filings Report.

It was the second straight monthly increase for the three-county Johnson City MSA.  The increase is in step with a soft jobs market in the Johnson City. During 2013 the MSA lost an average of 33 non-farm jobs a month. The MSA’s delinquent mortgage rates, which are a lagging indicator to filings, were inching downward in the last two month of 2013. Since February’s filings were REOs (real estate owned) and NTS (notice of trustee sale) instead of NOD (notice of default) it’s likely they have been working their way through the system for several months.

New filings in Kingsport-Bristol increased in January by declined in February when compared to the same months the previous year. Kingsport-Bristol’s job market has softened, but did not post a non-farm jobs loss last year.

New filings for the first two months of 2014 were up from the 2013 totals in Sullivan and Washington counties when compared to last year. The totals are still slightly below the 2011 and 2012 levels.

Two months does not make a trend, but the increases in filings is a red flag that will focus increased attention of the CoreLogic delinquent mortgage rates when they are released this month.  The foreclosure rate for both MSAs has been trending down since June. Both are now slightly below 1% and nearing the market norm of one-half of 1%.

Tri-Cities foreclosure filings opposed the national trend. According to RealtyTrac’s February report new filings were down 27% across in the nation on the year-to-year metric…

The RealtyTrac Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months.

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