South Carolina – A recent report by the real estate data company ATTOM showed that more people are losing their homes to foreclosure in February because of the rising cost of living in the US. They found 32,938 homes were facing foreclosure, which includes notices of default, planned auctions, and homes taken back by banks. This is 8% more than last year, but slightly down by 1% from the month before.
ATTOM CEO Rob Barber noted, “The annual rise in U.S. foreclosure activity suggests shifting dynamics within the housing market.” This trend signals potential changes in financial landscapes for homeowners, prompting adjustments in market strategies and lending practices.
Even with more foreclosures starting, the actual number of homes banks took back dropped in 28 states in February. In total, banks took back 3,397 homes, which is 14% less than last month and 11% less than last year. The biggest drops were in Georgia, where there were 52% fewer bank repossessions, and in New York, with a 41% decrease.
South Carolina with the highest jump in foreclosure rates
Despite the fact that many states saw a declining foreclosure rate, that is not the case with the Palmetto States where, according to the provided data, it was on the top of the list followed by several other states. According to ATTOM, foreclosures in South Carolina surged by 51%, followed by Missouri, with 50% jump, and Pennsylvania, with 46% foreclosure jump. For comparison, some states like Texas, 7%, and Indiana, 0.8%, saw only a marginal jump.
What to know about housing prices in 2024
Buying a house has become the least affordable it’s been in many years because home prices and the interest on loans have gone way up. A report from Zillow says that now, on average, you need to make $106,500 a year to afford a home. That’s 61% more money needed than just four years back.
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A few reasons are behind this tough situation. According to Freddie Mac, the interest rate for a 30-year loan has jumped to 6.74% this week, way higher than the 3% it was during the pandemic. Even with these higher loan costs, the prices of homes haven’t gone down much from what they were three years ago.
