Top 10 ZIPS with Highest Foreclosure Rates in Q1

Hey

If you have not received an email in a while, as a reminder you signed up on Zero Flux - A daily newsletter with 5-10 actionable real estate trends.

If you would like to unsubscribe, here is a quick link

When the long-term is unclear, just make good short-term decisions

― Unknown

Analysis: How Is Housing Inventory Growth Impacting Home Prices? link

• Inventory dynamics are shifting with significant year-over-year growth. As of early April 2024, the U.S. housing market has about 25% more homes for sale compared to last year, totaling around 513,000 single family homes. This increase is seen across various regions, with some areas like Southwest Florida showing substantial inventory gains.

• Market activity is on the rise despite unchanged demand and higher mortgage rates. Sales are improving as more sellers enter the market, overcoming the previous supply constraints. However, demand has not significantly increased from last year, and mortgage rates remain higher, posing questions on the future impact on home prices.

• Home prices are showing mixed signals, with recent sales prices up but asking prices stable. The latest sales price for homes entering contracts is $395,000, marking a 5.7% increase over last year, but the median asking price for homes remains unchanged from last year at $440,000, suggesting a potential stabilization in price appreciation.

U.S. Foreclosure Activity Increases Quarterly in Q1 2024 link

• U.S. foreclosures saw a modest rise in Q1 2024, with foreclosure starts up 2% and bank repossessions up 7% from the previous quarter. Overall filings were up 3% from the previous quarter but slightly down from last year.

• Notable states with high foreclosure starts include New Hampshire, Illinois, and Florida, showing significant quarterly increases. Delaware, New Jersey, and South Carolina had the highest foreclosure rates in the nation.

• The average time properties spent in the foreclosure process increased to 736 days, indicating a more prolonged foreclosure process. This marks a slight increase from the previous quarter but a 20% decrease from the same time last year.

New here? Join the newsletter (it's free).

Builders Are Building Smaller Homes link

• Builders are shifting to smaller homes as affordability remains a challenge. The trend towards smaller homes is a response to high mortgage rates and affordability pressures, aligning with consumer demand for more economically feasible housing options.

• Recent data from the Census shows a decrease in the average size of newly built homes. This change highlights a strategic shift by builders to focus on less costly, smaller properties that better meet current market demands.

• Over one-third of builders reduced home prices in 2023 to cope with the lowest housing affordability on record. These market adjustments are helping create more affordable homeownership opportunities, particularly for first-time buyers.

Apartment deliveries surge in Denver link

• Denver's apartment market is experiencing a significant increase in new constructions. In the past year, 10,908 new units were completed, nearly reaching the 2018 peak of around 11,500 units.

• The future looks even busier for Denver's apartment construction, with an expected 22,015 units to be completed in the next four quarters. This is more than double the current completion rate.

• Despite the surge in apartment supplies, Denver maintains a fairly tight housing market. The housing units-to-households ratio stands at 1.05, close to that of Dallas and below the national average of 1.11.

Top 10 ZIPS with Highest Foreclosure Rates in Q1 and March 2024

Prime Multifamily Metrics Improve for First Time in 2 Years 

More Office Conversions Underway to Revitalize Downtowns 

Single-Family Permits Surging In February 2024 

U.S. Interest in Bunkers and Safe Rooms Surges

Is WFH Bad for Your Health?

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here