Markets & Economy

Foreclosure rates spike on East Coast while West cools off

Latest RealtyTrac report shows nationwide foreclosure activity at a nine-year low, despite seasonal growth in March
  • Although there was a bump in foreclosure activity -- default notices, scheduled auctions and bank repossessions -- driven largely by a 21 percent increase in foreclosure starts last month, it's typical of the spring season.

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Today, RealtyTrac released its Q1 and March 2016 foreclosure market report, showing national foreclosure rates declining to pre-recession levels in 36 percent of metropolitan areas. Although there was a bump in foreclosure activity -- default notices, scheduled auctions and bank repossessions -- driven largely by a 21 percent increase in foreclosure starts last month, this is a typical trend of the spring season, according to Daren Blomquist, senior vice president at RealtyTrac. “Over the last 10 years, we see a 6 percent month-over-month increase in foreclosure activity. In March 2016, we saw an 11 percent increase. The whole purpose of a foreclosure is to sell the property so banks can recoup their losses on the loan,” said Blomquist. Blomquist pointed out that banks push delinquent properties through the foreclosure process in the spring, knowing they can recoup the most returns this time of year, like any other seller would. And, with low inventory across most marke...