Foreclosure Listings Grow in Major Cities Across Five States: Dover, Delaware; Las Vegas, Nevada; Salt Lake City, Utah; Newark, New Jersey; Chicago, Illinois.

By Elias DaSilva | September 11, 2024.

Foreclosure listings in cities across five states are rising, signaling a shift in the housing market landscape. In July, about 32,000 homes in the U.S. faced default notices, scheduled auctions, or bank repossessions, showing an 18% increase from June and a slight rise of 0.2% from the previous year. This indicates growing financial strain on homeowners, particularly in Delaware, which experienced a 7.37% increase in foreclosures. Other states with significant foreclosure activity include Nevada, Utah, New Jersey, and Illinois. These states have consistently seen higher foreclosure rates.

Foreclosure Start Data:
In July, lenders began foreclosures on 21,870 properties, an 18% increase from the previous month and a 4% increase year-over-year. States like California, Florida, Texas, Illinois, and New York topped the list with the highest number of foreclosure starts. Meanwhile, repossessed homes—those properties officially taken back by lenders—rose by 14% compared to June but were still down 2% from a year earlier. Despite this uptick, foreclosure activities remain substantially lower than the levels seen during the 2006-2007 pre-recession period, about 68% below those rates.

Home Equity Trends:
As foreclosure activities rise, the backdrop of growing home equity is noteworthy. With home prices climbing, nearly 50% of mortgaged properties now have loan balances at less than half of their estimated market value. At the same time, properties where owners owe 25% more than the property’s market value have decreased. According to Rob Barber, CEO of ATTOM, rising home prices have increased home equity, offering some protection for homeowners in various stages of their mortgages. These next few months will be crucial for understanding how these dynamics might affect the broader real estate market.

Foreclosure Listings in Cities:

• Dover, Delaware: 153 foreclosures
• Las Vegas, Nevada: 321 foreclosures
• Salt Lake City, Utah: 145 foreclosures
• Newark, New Jersey: 672 foreclosures
• Chicago, Illinois: 1,100 foreclosures