The Great Recession is still having an effect on homeowners across the country. A decade following the infamous real estate housing crisis some homeowners are continuing to feel the impact with Americans losing their homes.
Although Boca Raton luxury homes, Palm Beach Gardens luxury homes, and the like are moving off the real estate roles, many markets in Florida and across the country are still struggling.
Third Quarter Foreclosures
According to third quarter results on home foreclosures, bank repossessions soared from a year ago with numbers registering 66 percent higher than from the same time last year, reports RealtyTrac.
In total, foreclosure filings on U.S. properties numbered 327,258. Although high, this total actually registers as a 5 percent drop from the 2nd quarter, but when compared to the third quarter in 2014 it is up 3 percent.
Year over Year Increases in Foreclosures
The third quarter rise marked the second consecutive quarter where U.S. foreclosure activity increased on a year-over-year basis, following 19 consecutive quarters of year-over-year decreases.
Foreclosure activity is surging in New Jersey, Massachusetts, and New York with a flood of properties with deferred distress finally showing from the former housing crisis.
Foreclosure Trends across the Country
Analysts identify two different trends when examining the widespread foreclosure activity.
1) As in the Northeast, homeowners who have been receiving a bit of reprieve from legislative and legal dams holding up the process are finally hitting their limit and spilling over.
Many of these properties have deferred maintenance issues. Because of that, these homes can be expected to sell at more deeply discounted prices, which in turn, is likely to create a drag on home values overall.
2) Other markets are settling into a more normal pattern with foreclosures close to the same as it was before the housing crisis hit, if not even less. Washington, Michigan, and Texas are a few states that show a more standard foreclosure rate.
For these real estate markets, experts predict there will be little impact on home values and these foreclosed homes should be absorbed readily back into the real estate roles.
Florida’s Foreclosures Drops Significantly
The third quarter reads on the Florida housing market is actually looking better than it did a year ago with a drop of 17 percent in foreclosure activity. Boca Raton luxury homes, Palm Beach Gardens luxury homes, and similar properties are standing strong, but Florida does have some hot spot issues.
Overall, the state ranked second in the nation as the highest in foreclosures, following New Jersey.
Bank repossessions in Florida increased 34 percent from a year ago in the third quarter. One in every 186 housing units filed for foreclosure. When compared to a year ago, foreclosure starts decreased 28 percent, and scheduled foreclosure auctions dropped 46 percent year-over-year.
According to these numbers, there are 5 cities in Florida with foreclosure rates that are listed in the top 10 when it comes to the highest number of foreclosure filings in the nation. These cities are:
- Jacksonville: Coming in at number 2, Jacksonville had 1 in every 153 housing units with a foreclosure filing.
- Deltona Beach: Right behind Jacksonville is Deltona Beach at number 3 with 1 in every 155 housing units filing foreclosure.
- Tampa: At number 4 is Tampa with 1 in every 162 housing units filing foreclosure.
- Miami: This South Florida city sits at number 5 although it logged the same number of foreclosure filings per housing units with 1 in every 162.
- Lakeland: Lands at number 7 with one in every 176 housing units filing foreclosure.
- Ocala: The last Florida city in the top 10, Ocala is number 8 with one in every 179 housing units foreclosing.
What Do These Third Quarter Results Mean
These third quarter result marks the biggest annual rise on record with more than 123,000 homes going under and being repossessed by the bank. Banks can now push their foreclosures ahead after streamlining processes required by laws and court rulings, so the housing crisis lingers on for many households.
