New foreclosure filings for Tri-Cities region increased from the previous month, but are still in the housing market financial basement when compared to last year and beyond. That doesn’t mean the local housing market is problem free; however, it does afford a profile of a market where the fundamentals are strong.

According to ATTOM’s February Foreclosure report there were 25 new filing last month. Nine were in the three-county Johnson City metro area and 16 in the four-county Kingsport- Bristol metro.  Bank foreclosures totaled two in Johnson City three in Kingsport-Bristol. The rest of the new actions were notices for trustee sales.

“February’s rise in foreclosure filings suggests evolving market pressures,” said Rob Barber, CEO at ATTOM. “While some increase may reflect seasonal trends, the uptick in foreclosure starts both month-over-month and year-over-year signals potential shifts. We’ll continue monitoring how economic factors influence foreclosure activity moving forward.”

The local stressed mortgage properties market fits Mr. Barber’s national assessment, but to a lesser degree. Equity assessments from ATTOM show that a little over 60% of the local mortgaged properties are equity rich. And, many of those that are underwater have equity that gives them financial options other than foreclosure.

There was also a recent special report on commercial foreclosures, which increased in January.  The local commercial foreclosures were included in the 17 January filing. The number of those commercial foreclosures was so small it didn’t warrant a breakout.

ATTOM’s Housing Impact Report that identifies and ranks the housing markets that are  least and most at risk of declines. Both the Sullivan and Washington TN county markets remained among U.S. markets that are least vulnerable to declines. Conditions in the sister counties that were not included in the report have a similar risk level.

The risk analysis and rankings are derived from gaps in local affordability, underwater mortgages, foreclosures, and unemployment.

While the bevy of strong financial reports don’t mean the region’s housing market is problem free. Affordability concerns, and a sluggish return to normal inventory levels and declining demand are among the downside conditions.

Categories: REAL ESTATE