Los Angeles seeing an increase in foreclosures
According to Attom data solutions, a leading property data aggregator, LA along with cities in 22 other states are seeing an increase in foreclosures. This trend may have some recoiling with the memory of 2008’s recession, but is this cause for alarm?
While this is at least one case where a “spoiler” would be appreciated, unfortunately, it’s much too early to tell. But is there an explanation for this trend? According to Daren Blomquist Attom Data Solutions Senior Vice President of Communication, “We are starting to see some early signs of risks in the current housing boom…the pendulum is starting to swing back toward loose lending.”
However, at least in the case of New York and Chicago’s metro areas this trend has not been spotted, In fact quite the opposite appears to be the case with foreclosure starts declining year-over-year by 18 and 19 percent respectively. In addition to this, there is some other favorable data included in the report which you can view below.
So it appears that this trend, while certainly concerning, has not become overwhelming pervasive. Let’s hope it stays that way, and in the meantime, keep a weather eye on the horizon.
The Good:
From January to June foreclosure starts nationwide have fallen by 8% to 191,914;
Nationally, residential foreclosure filings during the first six months of the years were down 15% against the same time last year;
The average length of foreclosure during the second quarter of 2018 was 720 days, this is down from 883 days during the same quarter last year;
121 out of 219 metro areas included in the report had foreclosure activity below pre-recession levels during the second quarter of 2018 (LA is 59% below).
The Bad:
During the first six months of 2018 Twenty two states reported an increase in new foreclosure filings against the same time last year;
From January to June Los Angeles saw a 9% year-over-year increase in foreclosure starts and from April to June a 39% quarterly increase;
According to Attom Data Solutions this recent increase in foreclosures is occurring alongside a lending climate that is seeing it’s standards steadily relax.
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