Metro Detroit foreclosure activity declined 26 percent for the first six months of this year, a RealtyTrac analyst said, but distressed properties in the pipeline indicate that foreclosures will start increasing later this year.
The number of default notices, sheriff’s auctions and lender repossessions fell 35 percent in June in the four-county region, contributing to the overall decrease in the first half, according to RealtyTrac, an Irvine, Calif., foreclosure tracking company.
Michigan experienced similar reductions — 34 percent in June and 24 percent for the first six months of the year.
But Metro Detroit reported a 12 percent increase in scheduled auctions in June compared with a year ago, RealtyTrac analyst Daren Blomquist said, meaning auctions have jumped in two of the past three months.
“I would expect to see that trend continue based on what we’re seeing in other markets around the country,” he said in an email, “and eventually those increases in scheduled foreclosure auctions will likely result in an overall increase in foreclosure activity in Detroit later this year and into early next year.”
The region’s housing market has a low inventory of single-family homes and condominiums after home sales have risen 10 of the past 11 months, according to Realcomp II Ltd., a Farmington Hills-based multiple listing service.
More repossessed homes would increase the overall housing supply, although distressed properties usually depress sales prices.
Despite the foreclosure filing decline, Michigan remains a national leader in the rate of foreclosure activity. It ranked eighth nationwide in June.
By: The Detroit News