By DON FENLEY

TRI-CITIES, Tenn. – There were 88 area mortgaged properties with new foreclosure filings during the first three months of this year. That was an increase of four from the previous quarter and 24 fewer than last years.

Nationally, foreclosure activity was up 3%, according to ATTOM, a leading curator of land, property, and real estate data.

“Q1 2024’s foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties,” explains Rob Barber, CEO at ATTOM. “While foreclosures remain relatively stable, we’re closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market.”

Locally, the slight new filings increase in quarter-to-quarter filings doesn’t outweigh the decline from last year. The local data on repossessions fit the same pattern. They’re up one from Q3 2023 and down eight last year. ATTOM’s current analysis says U.S. repossessions hare up 7%.

The same thing is Mr. Barber cities in his reaction to how homeowners have continued to hold significant equity, contributing to a persistent hot housing market works in spades for the regional market.

According to ATTOM’ previous equity report, a little over half of the local mortgaged properties had an equity-rich status. That’s higher than the national average, and the local housing market continued in the first quarter at a slower sales pace with small median price growth.

Another noteworthy point on the equity status is that close to half of all households in the region are mortgage free. Combined with the equity rich status driven by the past four years of the post pandemic housing market puts most homeowners in the position of sitting on a pile of housing wealth.

The local housing market also posted its best performance on the Atlanta Federal Reserves’ Banks’ Homeownership Tracker. The tracker focuses on how much of their total income new homeowners are paying for housing. The recommended level is 30%, but that jumped higher last year. Although the numbers are coming down several counties – Sullivan and Washington – are only slightly below the 40% level.

The highest state foreclosure rates during the first quarter were Delaware, New Jersey, and South Carolina.

When the pandemic began and raged, many owners struggled with mortgage payments. A national-wide moratorium on foreclosures helped locals and countless others save their home. Because many did not have to make mortgage payments for months, some pundits jumped on a “there’s a foreclosure wave building.” It now appears those were false warnings – especially on the local level.

Categories: REAL ESTATE