Despite a modest increase in foreclosure filings on a monthly basis as of February, one housing industry analyst sees relief for the national foreclosure crisis through the end of this year and into 2014.
RealtyTrac data for February revealed that 154,291 U.S. properties reported a foreclosure filing—default notice, scheduled auction and bank repossession—for this time period, which is up 2% from the prior month but a decline of 25% year-over-year.
Overall, one in every 849 housing units had a foreclosure filing during the month.
“At a high level the U.S. foreclosure inferno has been effectively contained and should be reduced to a slow burn in the next two years,” said Daren Blomquist, vice president at RealtyTrac. “But dangerous foreclosure flare-ups are still popping up in states where foreclosures have been delayed by a lengthy court process or by new legislation making it more difficult to foreclose outside of the court system.”
Bank repossessions fell to a 65-month low in February due to an 11% drop
RealtyTrac said bank repossessions decreased month-over-month in 32 states and declined from a year ago in 41 states, including Oregon (down 78%), Massachusetts (69%), Nevada (59%), Georgia (58%) and California (49%).
Meanwhile, after three consecutive monthly reductions, foreclosure starts increased 10% in February compared to January. However, notices of defaults were still down from February 2012 by 25%.
Foreclosure starts were higher on a monthly basis in 32 states, led by Nevada which reached a 17-month high with 1,995 notices of defaults. Maryland also experienced its highest monthly total in two and a half years with 1,918 foreclosure starts.
Other states that saw notable rises in foreclosure starts were Washington, New York and New Jersey, all up 172%, 139% and 70%, respectively.
“Foreclosure starts have been steadily building in those states over the last several months and likely will end up as bank repossessions or short sales later this year,” Blomquist stated.
For the sixth straight month, Florida posted the nation’s highest foreclosure rate. In the Sunshine State, one in every 282 housing units reported a foreclosure filing in February, which is more than three times the national average. A total of 31,726 Florida properties had a foreclosure filing during the month, up 6% from January and 20% from a year ago.
Furthermore, Florida cities accounted for seven of the country’s 10 greatest metropolitan foreclosure rates for the month, led by Miami, Orlando, Ocala, Tampa and Palm Bay rounding out the top five spots. Jacksonville was eighth on this list with Naples ranked ninth.
