Foreclosure Statistics

Here’s a summary of the current stats on real estate foreclosures in the US (as of February 2024):

Increase Compared to Last Year:

Foreclosure activity is on the rise, though still below pre-pandemic levels.
The number of properties with foreclosure filings in 2023 increased slightly compared to 2022.
February 2024 saw an 8% increase in filings compared to February 2023.

Not Quite Pre-Pandemic Levels Yet:

While foreclosures are rising, they are nowhere near the highs of the 2008 housing crisis.
Experts view this as a market correction rather than a cause for major alarm.

Regional Variations:

Foreclosure rates vary significantly by state.
States like Delaware, New Jersey, and South Carolina have the highest rates.
Major metro areas like Chicago, Philadelphia, and New York City lead in completed foreclosures (banks taking back properties).

Indicators to Watch:

Foreclosure starts (initial filings) are ticking upwards, which could signal future trends.
The average time to foreclose is decreasing, suggesting a faster foreclosure process.

Data suggests that as of February 2024, South Carolina has the highest new foreclosure filing rate.

There are a few possible reasons why South Carolina might have the highest new foreclosure filing rate:

Labor Market: South Carolina has a low labor participation rate, meaning a significant portion of the workforce isn’t employed. This can make it difficult for homeowners to afford their mortgages.
Shifting Housing Market: The housing market in South Carolina boomed during the pandemic, with rising prices and low inventory. Now, with higher borrowing costs and a slowdown in sales, some homeowners might be struggling with mortgages they qualified for in a different market.
National Trends: The rise in foreclosures in South Carolina could also be partly due to broader national trends, like rising interest rates impacting affordability. However, South Carolina seems to be experiencing a more significant increase than the national average