ATTOM’s August Foreclosure Market Report showed a notable shift in the Tri-Cities. For the first time in four years, new filings in August (57 in total) surpassed past levels. That’s a sharp contrast to earlier this summer, when the local market avoided the national trend of rising foreclosures.

So far, signs of housing stress here remain comparatively low. ATTOM’s Housing Risk Report confirmed that during the second quarter, local economic pressure on homeowners was muted. Still, there were subtle shifts worth watching. The percentage of mortgages considered “underwater” ticked up slightly in Sullivan County (+0.4%), while Washington County held steady. Both remain well below long-term historical averages, but the move, combined with early signs of labor market strain, nudged the area’s ranking for potential housing downturn risk higher. Even so, Sullivan and Washington counties continue to sit among the U.S. markets least likely to face a serious housing downturn.

Nationally, the picture is different. “August marked the sixth consecutive month of year-over-year increases in U.S. foreclosure activity and the third straight month with double-digit annual growth,” said Rob Barber, CEO at ATTOM. He noted that while overall foreclosure levels remain below pre-pandemic highs, the persistence of increases reflects added pressure from today’s high-cost, high-interest-rate environment.

Locally, home prices are still edging upward, but momentum has cooled. Meanwhile, the labor market is showing early signs of softening, and average hourly wages have dipped. For now, the Tri-Cities housing market is still far from distressed territory, but these indicators suggest that conditions are worth monitoring closely as the fall season unfolds.

Categories: CORE DATA