The state ranks 38th in the country even though the carrying capacity remains weak
The end of the pandemic-induced forbearance on mortgage payments has triggered an increase in foreclosures on homes across the country. But New Hampshire had one of the lowest foreclosure rates in the nation during the first quarter of 2022, according to a new report from ATTOM, which tracks foreclosure data and is the parent company of RealtyTrack, a company that tracks foreclosure and distressed properties. Largest online marketplace.
The state ranks 38th in foreclosure rates among 50 states, with 193 foreclosures in the first quarter, the rate of one completed foreclosure among every 3,310 housing units with one foreclosure filing. Illinois had the highest rate: one in every 791. South Dakota had the lowest: one in every 17,724.
According to ATTOM data, New Hampshire counties have the highest rates of foreclosures, in order: Merrimack, Cheshire, Strafford, Rockingham and Belknap.
While data shows that foreclosures begin in the two years after the COVID-19 pandemic and banks have the highest numbers, rates are still below normal levels, according to ATTOM, due to the end of government and bank mortgage forbearance programs. Huh.
“Even with the commencement of foreclosures and a large year-on-year increase in bank occupancy, foreclosure activity is still running at around 57 per cent where it was in Q1 2020, due to the pandemic by the Govt. The last quarter before consumer protection programs are implemented,” said Rick Sharga, executive vice president of market intelligence for ATTOM.
Foreclosures in New Hampshire are due in part to qualified buyers, fueling the New Hampshire real estate boom that was hot before the pandemic and red hot during the pandemic.
It remains a seller’s market in the state, where demand is high, but inventories are scant.
“While our inventory in New Hampshire remains tight, there is no shortage of well-qualified buyers in New Hampshire,” said Adam Gaudet, president of the New Hampshire Association of Realtors.
“The majority of buyers are using traditional financing, but we are still seeing occasional cash purchases from out-of-state buyers,” said Gaudet, owner/broker of 603 Birch Realty in Concord. “In this fast-paced market, buyers are talking with lenders earlier in the process and know exactly what they can afford before they begin touring homes.”
Troubled Affordability Index
According to NHAR data, affordability is a challenge in New Hampshire.
In its monthly report on real estate trends, NHAR’s affordability index hit a record low in March 2022, underscoring the need for more affordable housing options. The index measures whether a specific household earns enough income to qualify for a mortgage loan on a specific home based on the most recent price and income data.
An index above 100 indicates that the average income earner has more than enough income to qualify for a mortgage loan on an average-priced home, assuming a 20 percent down payment.
In March 2020, the state’s affordability index for a single family household was 126. In March 2021, it was 112. And in March 2022, it was 80, the lowest affordable index ever.
Rockingham County remains the most valuable county to buy a single-family home, according to the NHAR’s March report. The median price of a home is $590,000, up 28.3 percent as of March 2021. The statewide average was $440,000 in March, a new high.
Asked by auctioneer Paul McInnis whether he had seen an increase in the number of residential properties auctioned recently, he replied, “We haven’t.”
McInnis is the president of an auction business originally licensed in the state in 1976, which makes him the holder of the longest active auction license in New Hampshire. Based in North Hampton, he has been auctioning foreclosed real estate since 1978, handling properties for state-chartered banks that still hold mortgages on properties; It does not handle properties for which mortgages have been sold in the secondary market.
As for foreclosure auctions over the past six years, “I don’t want to say they are non-existent but they are very few,” McInnis said.
He said that on an average he auctions five residential properties in a year. Compare this, according to McInnis, in the late 1980s and early 1990s when he was doing 200 to 300 foreclosure auctions a year.
The recession of the 1990s was largely due to a weakening economy as a result of Federal Reserve policies and the end of a real estate boom in the mid-1980s that resulted in declining property values, reduced investment incentives and Lost job. ,
The ATTOM report shows a total of 33,333 U.S. properties with foreclosure filings in March 2022, up 29 percent from the previous month and 181 percent from a year ago – the 11th month in a row with a year-over-year increase in U.S. foreclosure activity. .
“It is likely that we will continue to see significant month-on-month and year-on-year growth during the second quarter of 2022, but will still not reach historically normal levels of foreclosures by the end of the year, unless that the US economy does not take a turning point for the worse.” said sharp.
Realtytrac.com shows many foreclosure properties that are being auctioned across the state. An example scheduled for auction on 13 May is a property on Old Turnpike Road in Nottingham, which is located in Rockingham County. On approximately five acres of 4,738 square feet, with three bedrooms and three baths, it represents a value of $419,000.
The NH Department of Banking encourages anyone facing foreclosure to call 211 or get HUD counselor or legal aid, or information about upcoming foreclosure prevention workshops. There is no charge for these services.