Foreclosure Surge

October 18, 2023

THE BIG SPLASH

Foreclosure Surge

What you should know

Home foreclosures in the U.S. have surged 34% compared to the previous year, as many Americans still face financial challenges amidst the ongoing cost-of-living crisis.

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  • A report by real estate data provider ATTOM revealed a 28% increase in foreclosure filings in the third quarter, totaling 124,539.

  • Foreclosure filings include default notices, scheduled auctions, and bank repossessions.

  • Despite the national economic recovery and job stability, some homeowners are still dealing with the financial aftermath of the pandemic.

  • The resumption of federal student loan payments is expected to exacerbate the foreclosure issue.

  • A poll by Pulsenomics found that most economists anticipate the homeownership rate to be impacted for at least a year due to resumed student loan payments.

  • Housing affordability is currently worse than during the 2008 housing bubble peak, due to a significant rise in mortgage rates over the past year.

A SCOOP OF MARKET DATA

The number you should know

10 months

Homebuilder sentiment has plummeted to a 10-month low due to soaring mortgage rates.

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  • Builder confidence dropped 4 points to 40 in October, marking the third consecutive monthly decline.

  • High mortgage rates and financing costs are cited as primary factors.

  • The average rate on a 30-year fixed mortgage has stayed over 7% for two months.

  • Builders are offering more incentives to attract buyers, with 62% reporting the use of sales incentives.

A SCOOP OF INSIGHTS

Something you’ll learn

Real estate brokers could face a federal antitrust probe for pocketing hefty fees, inflating home prices.

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  • Brokers can take as much as 6% of a home's sale price.

  • The Justice Department is scrutinizing the commission-sharing system.

  • Two private class-action lawsuits are challenging the National Association of Realtors' control over the housing market.

  • Critics argue the high commissions push up home prices.

A SCOOP OF CONTROVERSY

Everyone will talk about it

The former St. Mary’s Glacier Ski Resort, a 374-acre property that was operational from the 1930s to the 1980s, is listed for sale at $7 million.

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  • Nestled in Clear Creek County, the property is approximately 45 miles northwest of Denver and adjacent to the Arapaho National Forest, offering a blend of natural beauty and accessibility.

  • The sale includes a parking lot, a potential significant source of revenue, given the property's popularity among visitors.

  • The real estate listing has piqued the interest of a diverse group, including large and small developers, entrepreneurs, hospitality companies, and private equity firms.

  • The property, situated between 10,000 and almost 12,000 feet elevation, is not just a former ski resort but is seen as a versatile investment, with potential for development into a residential area, adventure hospitality business, or even a revival of the ski resort.

  • Its proximity to St. Mary’s Glacier, a popular hiking destination with year-round snow, adds to the property’s allure, promising the new owner a steady stream of visitors and potential revenue.

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