State Sees Decrease in Foreclosure Auctions and Foreclosure Starts While REOs Increase
Local Broker Anticipates Construction Boom, Record Price Appreciation in Next 18 Months
IRVINE, Calif. – June 13, 2013 — RealtyTrac® (www.realtytrac.com), the leading online marketplace for comprehensive housing and real estate data, today released its Oklahoma Foreclosure Market Report™ for May 2013, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 1,123 Oklahoma properties in May, a decrease of 11 percent from the previous month and down 13 percent from May 2012. One in every 1,475 Oklahoma housing units had a foreclosure filing in May, below the national average of one in 885 housing units and ranked No. 28 highest among all states.
The decrease in overall Oklahoma foreclosure activity was driven by a sharp drop in scheduled foreclosure auctions, down 47 percent from the previous month and down 26 percent from a year ago in May, following three straight months of annual increases. Foreclosure starts in Oklahoma were down 30 percent year-over-year in May, but bank repossessions (REO) were up 52 percent, the third straight month with an annual increase in REOs.
“The sharp drop in scheduled foreclosure auctions in May is likely the result of a foreclosure moratoria imposed after the devastating tornadoes tore across the region during the month,” said Daren Blomquist, vice president of RealtyTrac. “This comes on the heels of an upward trend that resulted in an 18-month high in scheduled foreclosure auctions statewide in April.”
The tornadoes are also having a much bigger impact on the area’s overall real estate market, according to Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty in Oklahoma City and Tulsa.
“We have 4,000 homes totally destroyed, and another 10,000 homes damaged — a large part of which are uninhabitable,” said Detrick. “We lived — in May 1999 — through the previous tornado that struck the area. We know what that was like. And that of course was followed by a construction boom. We had construction crews in here building as fast as they could and we anticipate that trend this time.”
“But right now, people can’t find a place to live. You can’t find a place to rent. Churches are taking in people. People are taking in people. Adversity brings us together, and this is a king-sized adversity. And we are united. We are rebuilding and coming back.”
Detrick said the decrease in May foreclosure activity was largely due to the tornado’s after affects, which is creating an inventory imbalance that’s being exasperated by the destruction of over 14,000 homes. That inventory imbalance, combined with rising costs on building supplies, will likely lead to an unprecedented period of home price appreciation in the Oklahoma City market over the next five years.
“I see probably the most prosperous time and the greatest appreciation in real estate may be on record over the next 18 months,” Detrick added, noting he’s been involved in the real estate industry for 53 years. “We have pent-up buyer demand. Our listings are down 22 percent from a year ago. We have a significant imbalance of buyers in versus moving out, and that again affects the inventory.”
Oklahoma City foreclosure auctions down 45 percent from previous month
In Oklahoma City, scheduled foreclosure auctions dropped 45 percent month-over-month and were down 13 percent from a year ago. Foreclosure starts decreased 40 percent from a year ago, while bank repossessions jumped 150 percent annually — corresponding to a recent increase in scheduled foreclosure auctions in the metro area. One in every 1,360 Oklahoma City housing units had a foreclosure filing in May, well below the national average and ranked 128th nationwide out of the 209 metro areas nationwide that RealtyTrac ranks each month.
Tulsa foreclosure auctions down 52 percent from previous month
In Tulsa, scheduled foreclosure auctions dropped 52 percent from the previous month and were down 42 percent annually. Foreclosure starts decreased 34 percent annually while REOs increased 16 percent during the same time period — corresponding to a recent jump in scheduled foreclosure auctions. One in every 743 Tulsa housing units had a foreclosure filing in May — above the national average and ranked 68th out of metros nationwide.
High-level national findings from the report:
- Foreclosure filings were reported on 148,054 U.S. properties in May, an increase of 2 percent from the 74-month low in April but still down 28 percent from May 2012. One in every 885 U.S. housing units had a foreclosure filing during the month.
- The monthly increase in overall foreclosure activity was caused largely by an 11 percent month-over-month increase in bank repossessions (REOs), although REO activity was still down 29 percent from a year ago.
- U.S. foreclosure starts increased 4 percent from the previous month but were still down 33 percent from a year ago. Foreclosure starts increased from the previous month in 25 states and were up from a year ago in 14 states.
- The foreclosure problem continues to shift away from non-judicial states and toward judicial states. Five of the top six state foreclosure rates in May were in judicial states.
- Among the nation’s 20 largest metros, those with the biggest increases in median home prices tended to be in states where a non-judicial foreclosure process has allowed foreclosures to be absorbed by the market more quickly. Seven of the 10 metros with the biggest jumps in median home prices from a year ago were in non-judicial states, while all five metros with flat or declining median prices were in states with a judicial foreclosure process.
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee’s Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.
The RealtyTrac U.S. Foreclosure Market Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.
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RealtyTrac (www.realtytrac.com) is the leading supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac’s wholly-owned subsidiary, Homefacts®. RealtyTrac’s foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.
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