A Significant Increase in Foreclosure Activity Recorded in Plano, Texas

A recent study reveals a “significant” increase in foreclosures over the past few months, not only in Plano, Texas but across the country, due to the major challenges citizens face today with the high cost of living, particularly with high interest rates.

Brian Turner, director and chief economist at Meridian Economics, highlighted the figures showing that banks and lenders reclaimed 3,954 homes through foreclosures nationwide in the past month, marking a 13% increase compared to the previous month.

Turner also noted: “This was the first monthly rebound in completed foreclosures since July 2023,” as foreclosures increased by 1% compared to the same period last year. “Although this may be considered a seasonal trend, there are undoubtedly other external factors influencing this rise, including inflation, relatively high mortgage rates, and changes in the labor market.”

An ATTOM report also clearly shows that there are currently 37,679 properties with foreclosure filings, whether due to notices of default, bank repossessions, or scheduled auctions, representing a 10% increase from the previous month and a 5% increase compared to 2023.

Turner continued: “Despite the increase in foreclosures, they remain well below the levels seen during the 2008 financial crisis.” “However, the situation could worsen as property prices, high mortgage rates, and the many taxes affecting the country continue. And due to the rise in home prices and mortgage rates, we can say with certainty that housing affordability is at its worst point in decades.”

Other important data to consider are:

• The aggressive interest rate hikes by the Federal Reserve have made the housing affordability crisis even tougher.
• Rates have decreased slowly, but the average rate for a 30-year fixed mortgage rose to 6.9%, well above the COVID-19 era lows of 3%.
• The shortage of homes for sale is due to current homeowners with low mortgage rates hesitating to sell.

Available Foreclosures: 

Plano: 150 homes available.
Dallas: 200 homes available.
Houston: 300 homes available.

By Elias DaSilva | September 25, 2024