Forecast for 2024: Navigating the Foreclosure Landscape for REO Contractors
As 2023 draws to a close, the U.S. housing market is showing signs of a significant shift in foreclosure trends. Data from ATTOM’s Q3 2023 U.S. Foreclosure Market Report reveals an evolving landscape that REO contractors should be keenly aware of as they look toward 2024.
Increased Foreclosure Filings: A New Wave of Opportunities The report noted a 9% year-over-year increase in foreclosure filings, reaching a total of 100,546 U.S. properties in Q3 2023. September 2023 alone saw a 15% jump from the previous year. This rise signals a potential upswing in the market for REO contractors, indicating more properties may require their services for maintenance, repair, and preparation for sale.
Regional Variations: Hotspots for REO Activity States like New Jersey, Maryland, and Nevada emerged as regions with the highest foreclosure rates. Particularly for REO contractors operating in these areas, 2024 could bring a surge in demand. Understanding regional variations and focusing on these hotspots could be key to capitalizing on the increasing number of foreclosures.
Quickening Foreclosure Timelines: A Faster Turnaround The average time to foreclose has decreased significantly, suggesting that properties may move more quickly through the foreclosure process. For REO contractors, this means potentially shorter intervals between jobs and a need for efficient turnaround times to handle the increased volume of work.
Decreased Bank Repossessions: A Balancing Factor Despite the rise in foreclosure starts, bank repossessions have seen a slight decrease. This trend might balance out the market, preventing an oversupply of REO properties and stabilizing the workload for contractors.
The 2024 Outlook: Preparing for Change As we move into 2024, REO contractors should prepare for a dynamic market. The anticipated increase in foreclosures presents both challenges and opportunities. Contractors should be ready to adapt to faster timelines, focus on regions with high foreclosure rates, and stay informed about ongoing market shifts.
The data from ATTOM’s Q3 2023 report paints a picture of a foreclosure market that is gradually heating up. For REO contractors, staying ahead of these trends means being well-positioned to take advantage of new opportunities in 2024.
Stats from: attomdata
Highest foreclosure rates in New Jersey, Maryland, and Nevada
Nationwide one in every 1,389 properties had a foreclosure filing in Q3 2023. States with the highest foreclosure rates in Q3 2023 were New Jersey (one in every 794 housing units with a foreclosure filing); Maryland (one in every 816); Nevada (one in every 818); South Carolina (one in every 832); and Delaware (one in every 843).
Among 223 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2023 were Columbia, South Carolina (one in every 560 housing units with a foreclosure filing); Atlantic City, New Jersey (one in every 584); Fayetteville, North Carolina (one in every 587); Cleveland, Ohio (one in every 612); and Lakeland, Florida (one in every 621).