Auction.com’s first Client Summit Survey [1]reported that 40% of its respondents revealed the western region of the U.S. is expected to see the largest rise of distressed properties in the second half of 2019.
The southern region of the nation is expected to see the lowest increase in distressed properties at 17%. The survey added that 23% of respondents expect the midwest to see an increase and that amount drops to 20% for the northeast.
According to the survey, the west region posted a 10% quarter-over-quarter increase in foreclosure starts in Q1 2019, higher than the nationwide 7% increase and tied with the south for the largest regional increase.
“Additionally, several bellwether markets in the West region posted year-over-year increases in foreclosure starts, including San Diego County, California, (up 16%); Salt Lake County, Utah, (up 11%); Denver County, Colorado, (up 20%); Snohomish County/Seattle, Washington, (up 36%); and Multnomah County/Portland, Oregon, (up 48%),” the report states.
These responses represent a shift from trends earlier in the year, as foreclosure starts in the south increased 12% year-over-year in Q1 2019, according to the survey.
“The Q1 2019 year-over-year increase in the south region may be at least partially due to the lingering effects of the 2017 hurricane season, given the above-average increases in markets hit hard by the hurricanes: Harris County/Houston, Texas, (up 109%); Palm Beach County, Florida, (up 109%); Orange County/Orlando, Florida, (up 218%),” the report stated.
Of those who responded, 72% plan to increase loss mitigation efforts in the remainder of 2019, and 81% of those expecting more foreclosure activity plan to increase loss mitigation.
The survey found that just 16% of respondents expect to see a “substantial increase” in loss mitigation efforts.
This report comes shortly after CoreLogic’s latest Loan Performance Insights Report [2] stated mortgages that are delinquent more than 30 days fell to 3.6% in April 2019.
CoreLogic’s report found delinquency rates have fallen year-over-year from 4.3% in April 2018. Natural disasters, especially in the western U.S., though, are still a cause for concern.
“However, a number of metros that suffered a natural disaster or economic decline contradict this national trend. For example, in the wake of the 2018 California Camp Fire, the serious delinquency rate in the Chico, California, metro area this April was 21% higher than one year ago,” said Frank Nothaft, Chief Economist for CoreLogic.