Local foreclosures, delinquency rates still at rock bottom

There were 25 mortgaged properties with foreclosure filings in May. That’s almost double the number from May last year and significantly fewer than what it has been during normal times. Delinquency and foreclosure rates are also down from last year.

Those new filings in the three-county Johnson City Metropolitan Statistical Area (MSA) accounts for one out of every 8,821 homes. In the four-county Kingsport-Bristol MSA, it’s one out of every 10,599 homes, according to ATTOM Data Solutions.

“While there’s some volatility in the monthly numbers, foreclosure activity overall is continuing its slow, steady climb back to normal after two years of government intervention led to historically low levels of defaults,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “But with inflation now at a 41-year high, and runaway prices on necessities like food and gasoline, we may see foreclosure activity ramp up a little faster than most forecasts suggest.”

Another factor weighing down new local filings is the equity homeowners stacked up during the past two years.

ATTOM’s latest Home Equity Report said 48% of the region’s mortgaged properties had equity-rich status. That means the property loan to value ratio was 50% or higher. That’s almost double the equity share in 17 local zip codes in last year’s first quarter.

The regional share of equity-rich properties was 44.8%. Tennessee’s average share was 51.2% and the national share was 44.9%.

Blountville had the region’s highest share of equity-rich properties – 53%.

Another housing market health indicator is the CoreLogic delinquency, and foreclosure rates report.

Nationwide, “the share of borrowers in any stage of delinquency was at an all-time low in the first quarter of 2022,” said Molly Boesel, principal economist at CoreLogic.

While the share of borrowers in any stage of delinquency was at an all-time low, Boesel expects distressed sales to rise over the coming year.

The 30-day or more delinquent rate in the Johnson City metro area is 2.6%. It was 4.3% this time last year. The seriously delinquent rate is 1.2%, down from 2.7% last year. The foreclosure rate is 0.1%, unchanged from last year.

Kingsport-Bristol’s 30-day delinquent rate is 3.3%, down from 4.8% last year. The seriously delinquent rate is 1.7%, down from 3.3% last year, and the foreclosure rate is 0.3%, up from 0.2% last year.


Categories: REAL ESTATE

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