17 Jun Foreclosures Begin to Decline and Building Permits Rise
Foreclosures are starting to decline while building permits are on the rise once again. According to a new report from RealtyTrac, in some markets, the number of foreclosures and building permits aren’t moving opposite of one another, but rather, both are going up.
Adds Daren Blomquist, vice president at RealtyTrac, “Nationwide and in most markets it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favor of supply of homes for sale in the coming months—both new homes and foreclosures.”
RealtyTrac recently analyzed some HUD data that showed that the online foreclosure marketplace saw single-family building permits increase 27% year-over-year during the first quarter. That marks the highest level in five years. What’s more, foreclosure starts dropped 27% during the same period to their lowest level since the second quarter of 2006.
Blomquist said, “On the other extreme there are some markets where both building permits and foreclosure starts are down dramatically, indicating that there will be no reprieve from the shortage of homes for sale in those markets in the near future.”
RealtyTrac found that the five states with the most single-family building permits during the first quarter include California, Texas, Florida, North Carolina, and Georgia. All five of these states recorded double-digit gains year-over-year, and each of these states saw a decrease in foreclosures during the same one-year period.