Foreclosure Numbers are Increasing- Will Cheap Homes Pop Up on Sanibel?

Foreclosure Numbers are Increasing- Will Cheap Homes Pop Up on Sanibel?Real estate records show that there is an increasing number of homeowners at risk of foreclosure around the country just in the past two years. It is estimated that somewhere around 357,000 properties received a notice of foreclosure filing last year according to a report shared by real estate data firm ATTOM. These numbers have increased by 10% from the previous year and by 136% from the year before.

While this may seem like a massive flood of foreclosure, it is a good idea to be objective about the whole picture before becoming concerned about foreclosures popping up in Sanibel and around the country causing another housing crash. A lot of the giant increase in foreclosure numbers in 2021 was attributed to the moratoriums ending after the president put them in place during the pandemic. It is more of a correction in the market than a cause for a housing crash alarm.

The moratoriums were put into place as Americans suddenly found themselves without jobs because companies had to shut their doors during the worldwide pandemic. Millions of Americans found themselves without a way to pay their mortgage or even put food on the table. The federal moratorium was in place until mid-2021 and as it ended this is when foreclosure numbers skyrocketed. Some states decided to extend these moratorium restrictions but as they all ended it expectedly increased the number of foreclosure proceedings.

It's also good to know that fewer homes are being purchased and sold as compared to pre-pandemic and more normalized real estate market conditions. Even with these increases the number of foreclosure filings was still below the peak number filed in 2010 just after the major housing crash.

What areas of the country have the highest foreclosure rates?

Though the state of Florida is on the list of the highest foreclosure rates in the country it is still far below the state recorded with the most foreclosure filings in the country. And areas of Florida with the highest foreclosure filings are not in the Lee County area. 

New Jersey is recorded as the highest state in the country in 2023 for foreclosure filings. The numbers for New Jersey foreclosures sit around 0.46% of all homes in the entire state. The next state in line with the highest foreclosure numbers is Illinois at 0.42%. Then comes Delaware, Maryland, Ohio, South Carolina, Nevada, Florida, Connecticut, and Indiana.

Florida State is in the top 10 of states with the highest number of foreclosures but it is number eight out of 10 and the number of foreclosures is at 0.37% of all properties across the state of Florida. This is still a very low number of homes seeing foreclosure filings as compared to all of the homes owned in the state currently. And Lakeland Florida is the most prominent area of the state currently seeing foreclosure filings where the number of filings is still below 1% of homes.

Will foreclosure numbers increase in Florida and Sanibel? The answer is it is probably likely that there will be an increased number of foreclosure filings. But the increase is most likely remnants of balancing out foreclosure moratoriums. There are always foreclosures happening every year in any given location in the country. There is no reason to fear that a housing crash is going to hit Sanibel or America in the immediate future.

If you are looking to buy or sell a home in Sanibel I am here to help. I am a local knowledgeable Sanibel realtor who has received many awards including Best of the Islands real estate team for several years since 2009. Contact me anytime for the most thorough and knowledgeable real estate representation and the best experience of buying or selling a home on the island possible. Contact me anytime with any Sanibel real estate needs.

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