While the rate at which home prices are continuing to grow is slowing down in markets across the country, they’re still registering at record-high levels in many areas throughout the U.S.
The last time home prices faced such pressing affordability numbers was right before the Great Recession, from 2007 to 2009, which brought an extreme decrease in home values and millions of foreclosures. But, while today’s buyers continue to face a pricey market, a recent LendingTree report explains that we’re “in much better shape,” and foreclosures are relatively rare.
Across the country, the report noted that only 46,327 homes are vacant due to foreclosure out of a grand total of 143.4 million housing units across all 50 states. Additionally, homes nationwide aren’t likely to be empty as a result of foreclosure, even if vacant. To date, 13,868,075 homes are vacant, although according to LendingTree, just 0.33% are empty from foreclosure.
“One of the main reasons why foreclosures aren’t common is because most homeowners are sitting on mortgage rates below 5% and thus have very manageable monthly payments,” explained LendingTree’s Senior Economist and report author Jacob Channel. “On top of that, strict lending standards implemented in the wake of the Great Recession help to ensure that, even if their rates and payments are high, people who get mortgages aren’t likely to default on them.”
States with the most foreclosed homes consist of New York, Ohio and Michigan, with 4,342, 3,489 and 3,454 properties, respectively, that are vacant as a result of foreclosure—an average of 0.06%.
Diving deeper into the data, Alaska, Rhode Island, Utah and Wyoming have zero reported foreclosed homes. “While the American Community Survey estimates there are zero foreclosed homes across these states, margins of error could impact that, albeit not by much,” the report states.
For the full LendingTree report, click here.
