There is an interesting, unexpected wave of increased foreclosure filings for residential properties in the United States.
Los Angeles recently showed a 20 percent increase in foreclosure filings. Houston was up 76 percent. Philadelphia, Miami and San Francisco were up 10 percent.
"The increase in foreclosure starts is not just a one-month anomaly in many local markets, but we see a year over year increase in 33 metro areas, including Los Angeles, Miami, Houston, Detroit, San Diego and Austin," said Daren Blomquist, Sr .VP with ATTOM Data Solutions. See the hot spots of foreclosures in 2018.
After more than 34 months of reduced foreclosures, the trend has reversed and appears to be growing.
Markets reporting increased foreclosures include 23 states and many large metropolitan areas which had been considered healthy.
Forty four percent of markets in the U.S. are impacted. Florida, Illinois, Texas, Ohio, California, Michigan, Oklahoma . . . the list goes on and on. Major cities are impacted including foreclosure increases in Los Angeles, Houston, Fort Worth, Dallas, Miami, Chicago and many other cities that in the past 34 months have been growing and prospering, according to ATTOM Data Solutions.
“This could be a bellwether, the canary in the mine telling us of new trends,” said Ben Boothe, President of BBAR INC. Appraisal Specialists.
This is ironic when so many have believed that the "Obama recovery" and subsequent "Trump economy" were signifying a better economy. It seems that lower lending standards have again created some higher risks. Our advice to borrowers is to be sure your cash flow and debt service ability are secure. Advice to lenders and mortgage fund packages is to be sure you have current appraisals on your real estate portfolio. And, of course, disregard what the politicians in Washington say. The nation's best experts, economists and market specialists have been selling off some stocks. Perhaps stock markets have reflected on some uncertainty, with wide swings and substantial selling sprees, by investors in recent weeks. Also, the inverse yield curve has created notice since this invariably precedes recession.
Note this chart and see a sudden and strong upturn in foreclosure legal activities.
BBAR Inc. Appraisals is following this trend. "We note that as residential foreclosure activity is higher, we are getting calls every week to appraise residential liquidations. There are great investment and profit opportunities when markets are in transition. Those who are good managers and investors and who stay atop their investments and adjust to the current market will do well.
We also note that the trend for commercial income-producing properties is unique. It appears that commercial buildings, and the commercial real estate market overall, is cooling off in the far West and far East of the USA, while the heartland (Texas, New Mexico, Louisiana, Oklahoma, Kansas and so on) is showing a "pick up" in new commercial building activity and values. Therefore, the sage advice is our best advice is: if you have investments or aspirations in real estate investments, stay informed, call us if we can share our perspective with you, and always have current real estate appraisals.
STAY INFORMED AND ALWAYS HAVE CURRENT REAL ESTATE APPRAISALS
That is the best way to see what is going on with your property and in your area. We have access to over 1 million property sales and leases. Let us help you. Our firm offers a seven-day turn around on many commercial appraisal assignments, and we are at your service.
Call: www.benboothe.com 817-793-1484, ask for Ben Boothe, Sr.