Foreclosures continue to decline in metro Atlanta, yet the region remains one of the nation’s leaders in the category. During the 12 months ending in May, there were 14,340 completed foreclosures in metro Atlanta, the second-highest number among big U.S. metro areas behind only Tampa-St. Petersburg at 17,044, according to CoreLogic, a California-based real estate research firm. Metro Atlanta’s total was down from more than 20,000 completed foreclosures in the prior 12-month period, according to CoreLogic.
The region’s progress tracks the trend in the national housing market, where completed foreclosures fell 19.2 percent from a year earlier. Among states, Georgia had the sixth -highest number at 26,523 completed foreclosures. The top five were Florida (104,000), Michigan (46,000), Texas (33,000), California (28,000) and Ohio (27,000).
Foreclosures became an epidemic after the burst of the housing bubble in 2006-2007, a collapse followed by plunging prices and a financial crisis that led to a devastating recession – which in further undermined housing.
A flood of foreclosures followed, virtually destroying the market for housing in many areas. Home values in many parts of metro Atlanta have yet to return to pre-recession levels. But as foreclosures recede, the market can build momentum. “With three million jobs created during the past year, the improving labor market has helped more borrowers stay current on their mortgage loan,” said Frank Nothaft, chief economist for CoreLogic. “Because fewer loans are becoming seriously delinquent, the foreclosure inventory has come down to its lowest level in more than seven years, with only 1.3 percent of loans in foreclosure proceedings.” In metro Atlanta, 3.4 percent of mortgages are in serious delinquency, vs. 4.4 percent a year ago, according to CoreLogic.
Down but not OUT!