By DON FENLEY
TRI-CITIES, Tenn. – The health of the region’s mortgaged properties is sending mixed signals just like the home sales and price data.
First quarter foreclosure activity increases at a faster rate than what’s happening on the national level. The increases are minimal when compared to past years due to the region’s robust economy and large equity buildups during the pandemic housing boom. At the same time, the region’s delinquency rates are declining.
“Despite efforts made by government agencies and policy makers to reduce foreclosure rates, we are seeing an upward trend in foreclosure activity,” said Rob Barber, chief executive officer at ATTOM. “This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”
ATTOM’s, a land, property and real estate date firm, Foreclosure Activity Report, shows 112 properties with new filings during the first three months of this year. That’s eight more than the fourth quarter of last year, and 29 more than Q1 last year. The local percentage increase is 32% compared to 22% on the US level. That’s not a pressing short-term issue, but something investors and real estate professionals will closely watch.
So far this year, notices of trustee sales have outnumbered the number of bank repossessions by almost four-to-one.
CoreLogic’s reports on the health of the local mortgaged property market show the 30-day or more and seriously delinquency rates declining in both local metro markets declining from the time last year.
Kingsport-Bristol’s 30-day rate is 3.5%, down from 3.9%, and the serious delinquency rate is 1.3%, down from 2% last year.
The Johnson City metro 30-day rate is 2.4%, down from 3.2%, and the serious delinquency rate is 1%, down from 1.6% last year.
Categories: REAL ESTATE
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