Foreclosure filings dropped in November. Is market pressure finally easing up?

Foreclosure activity slowed slightly in November 2024, reversing a trend of rising foreclosures in October. But this decline may merely be a seasonal phenomenon, according to real estate data provider Attom.

On Tuesday, Attom released its November 2024 U.S. Foreclosure Market Report. The report includes the total number of properties nationwide that have at least one foreclosure filing. Attom considered homes in default, auction and real estate-owned (REO) status along with foreclosures that were actually completed.

The monthly report showed that 29,390 properties had foreclosure filings in November. That represents a 3% decrease from October’s total of 30,784 and a 9% decline from November 2023.

Attom CEO Rob Barber urged the mortgage industry to remain vigilant and described the decline as a common seasonal occurrence.

“The slight decline in U.S. foreclosure activity during November most likely reflects the seasonal ebb we often see this time of year,” Barber said in a statement. “While foreclosure filings are down both month-over-month and year-over-year, the data highlights areas of the country, such as Nevada, Florida, and Connecticut, where foreclosure rates remain relatively high. As we move into 2025, we’ll be closely monitoring how economic pressures and market dynamics may influence a potential rebound in activity.”

Nevada maintained its status as the state with the highest foreclosure rate as one in every 2,941 homes in the Silver State had a filing. Florida (one in 3,047) moved up to No. 2, followed by Connecticut (one in 3,210), Maryland (one in 3,535) and Indiana (one in 3,567). New Jersey, California and South Carolina — which had some of the highest rates in October — disappeared from the top five. Nationally, one in every 4,795 units had a foreclosure filing last month.

Attom analyzed foreclosure rates in 224 metropolitan areas with populations of 200,000 or more. Similar to October, California led the way as Modesto (No. 1), Bakersfield (No. 3), Riverside (No. 4) and Chico (No. 5) were among the five metros with the highest foreclosure rates. Reading, Pennsylvania, held the No. 2 spot.

Riverside (one filing for every 2,207 homes) also had the highest foreclosure rate among metros with more than 1 million residents. Cleveland (one in 2,385) held the No. 2 spot, followed by Philadelphia (one in 2,414), Miami (one in 2,551) and Las Vegas (one in 2,645).

Foreclosure starts — meaning that lenders have started the process but have yet to repossess the home — totaled 20,231 in November. That’s down 3% from October and 10% lower compared to November 2023. Texas (2,542) had the most starts, followed by California (2,239), New York (1,167) and Pennsylvania (844).