In 2023, Texas saw an increase in home foreclosures, causing concern among residents and real estate experts. Local news from Dallas News reported a significant 19 percent rise in foreclosures in the northern part of Texas compared to the previous year. Data from real estate group ATTOM revealed a total of 28,533 homes facing forced sale in Texas, trailing just behind California with 29,180 similar filings.
Nationwide Trends: 2023 Foreclosure Increase Echoes Across
This surge wasn't exclusive to Texas, as the entire United States experienced a 10 percent increase in foreclosure notices by the end of 2023, totaling 357,062 properties. Although this marked a substantial jump from 2021, it was still 28 percent lower than the numbers seen in 2019.
The impact was particularly felt in North Texas, notably in the Dallas-Fort Worth metro area, where home prices had doubled in the last decade. Over 6,300 homes across more than a dozen counties were in danger of foreclosure, with Dallas and Tarrant counties bearing the brunt.
Foreclosure Compared to Before the Pandemic
Despite the worrying trend, it's important to note that, while higher than the previous year, the 2023 figures are still lower than pre-pandemic levels in 2019. The pandemic-induced break in foreclosure activities also contributed to the increase. For perspective, in 2006, just before the Great Recession, 38,352 homes faced foreclosure.
Experts Share Hopeful Outlook on 2023 Foreclosures
Experts, including Rob Barber, CEO of ATTOM, urge caution against viewing the 2023 increase as a sign of an imminent economic downturn. Barber sees it as a return to more normal patterns after years of uncertainty, predicting that the housing market won't reach the highs of the past decade. Steve Brown, the real estate editor at The Dallas Morning News, adds that the rise may not be as alarming because many homeowners have substantial equity in their houses, providing them with options to navigate potential challenges.
Despite the rise in filings, there's a positive aspect: the actual homes taken back by lenders decreased by 2 percent from 2022 and a significant 71 percent from 2019. This suggests that not all homes in foreclosure ended up being taken away, with many homeowners finding solutions through negotiations or selling their homes.
In summary,
While the increase in Texas home foreclosures in 2023 raises concerns, a closer look reveals nuances. The numbers, though higher than the previous year, are still below pre-pandemic levels, offering some reassurance. Rob Barber's perspective on returning to normal patterns provides hope for the housing market, emphasizing the importance of homeowners exploring options amidst uncertainties, and leveraging their home equity to navigate the real estate landscape.
