First-time foreclosures in New York City stagnated in Q3 2019, with only a 1% uptick year-over-year, according to a new report from PropertyShark. However, some boroughs saw significant increases, including in Manhattan.
Manhattan foreclosure cases are up 118% year-over-year, while Staten Island Staten Island cases increased by 183%. Despite the large spike in Manhattan, the number of properties foreclosed only increased from 22 to 48 compared to the same period year. Meanwhile, foreclosure activity in the Bronx dropped by 51%, while Queens saw a 10% dip in unique cases year-over-year.
Of the 48 cases this quarter in Manhattan, 25 of foreclosures were mortgage foreclosures. Only once in the past cycle has Manhattan had more foreclosures than in Q3 2019, and that was in Q4 2016. Additionally, pre-foreclosures increased 13% year-over-year in the borough.
Queens, despite a 16% decrease in foreclosures in Q3 2019, till had the most foreclosures among the 5 boroughs. PropertyShark found that 272 properties went to auction in Q3, and the 1434 zip-code, encompassing Jamaica, South Jamaica, Rochdale, and St. Albans neighborhoods, had 23 new foreclosure cases—the most in the borough.
Pre-foreclosure throughout the entirety of New York City was uopjust 4%, with a total of 2,391 properties in the pre-foreclosure process in Q3 2019. Manhattan led pre-foreclosure activity with a 19% increase, followed by Bronx and Staten Island. Brooklyn had a 10% lis pendens increase, while Queens saw a 13% dip. Brooklyn had a total of 856 properties in the pre-foreclosure stage in the third quarter of 2019, Queens 720, and Staten Island 353.
A recent article in the New York Post said New York’s struggles are similar to that of California, and it should look no further to California for solutions.
The Post said compared to New York’s “misguided policies,” California has conducted a debate on the issue and has taken “sensible steps” to alleviate the challenges.
Erik Kober of the Post said California legislators have also advocated for accessory dwelling units, or additional units within existing homes on lots zoned for single-family properties.