Foreclosure Auction Increase Follows 14 Months of Rising Foreclosure Starts
Scheduled Foreclosure Auctions Spike in Long Island, Brooklyn, and Staten Island
IRVINE, Calif. – June 13, 2013 – RealtyTrac® (www.realtytrac.com), the leading online marketplace for real estate data, today released its New York Foreclosure Market Report™ for May 2013, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 4,027 New York state properties in May, up 2 percent from the previous month and up 14 percent from a year ago.
The report also shows one in every 2,007 New York housing units with a foreclosure filing during the month, less than half the national average and ranked No. 36, highest among the states.
The monthly increase in overall foreclosure activity was caused primarily by a 95 percent spike in scheduled foreclosure auctions. A total of 508 properties statewide were scheduled for foreclosure auction during the month, up 21 percent from a year ago and the highest numbers since October 2010 — a 31-month high.
“The pig is starting to move through the python in terms of rebounding foreclosure activity in New York,” said Daren Blomquist, vice president at RealtyTrac. “After 14 straight months of annual increases in foreclosure starts statewide, May provided early evidence that these foreclosure starts are now moving through the process and being scheduled for a public foreclosure auction. The 21 percent annual increase in scheduled foreclosure auctions statewide was the first annual increase in scheduled foreclosure auctions in eight months.”
Foreclosure rates statewide remain relatively low despite the recent increases in activity, but the additional foreclosure inventory could help satiate strong demand in Long Island and New York City, according to Emmett Laffey, CEO of Laffey Fine Homes, which covers those markets.
“We are experiencing a lack of inventory which is being met with strong demand, particularly from the investor market. Investor interest in real estate has never been hotter,” Laffey said. “Secondly, consumer confidence is playing a major factor. With Wall Street up, unemployment down, and interest rates remaining near all-time lows, buyers are hoping to jump into the real estate game as quickly as possible.”
Although still at a relatively low level compared to foreclosure starts, scheduled foreclosure auctions jumped from the previous month and a year ago in the Long Island counties of Suffolk and Nassau. A total of 116 Suffolk County properties were scheduled for foreclosure auction in May, up 137 percent from the previous month and up 132 percent from a year ago, and a total of 45 Nassau County properties were scheduled for foreclosure auction during the month, up 165 percent from the previous month and up 36 percent from a year ago.
Scheduled foreclosure auctions also spiked 53 percent in Kings County (Brooklyn) from the previous month in May, and were up 174 percent from a year ago. Richmond County (Staten Island) reported a significant increase in scheduled foreclosure auctions on both a monthly and annual basis, spiking 50 percent from the previous month and a year ago.
Meanwhile scheduled foreclosure auctions were still down from a year ago in Bronx County (down 7 percent), Manhattan (down 67 percent), and Queens (down 17 percent).
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. Judicial states accounted for five of the top six state foreclosure rates in May.
- 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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