Dallas home foreclosures have been trending down for months, and according to a recent report, they are currently hovering around a 10-year low. While this is exceptional news for Dallas home owners, it's making things difficult for would-be buyers who are still contending with a lack of inventory.
According to George Roddy, CEO of Addison-based Foreclosure Listing Service, “For now it looks like we have reached some kind of plateau in the foreclosure levels, and I would expect no reason in the short-term for the levels to change much. We have probably reached normalcy in the foreclosure numbers for a market the size of D-FW — something that we have been waiting for, for a number of years.”
To date, North Texas foreclosure filings have dropped about 45 percent year-over-year, a marked improvement from the height of the housing crisis. If foreclosures continue at the current pace, the DFW Metroplex could see foreclosure levels drop to their lowest in nearly 10 years.
In fact, Foreclosure Listing Service points out that just 2,000 Dallas-area homes will be listed as foreclosures next month at property auctions. This is a continued trend from much of this year, when lenders posted 40 percent fewer foreclosures in Dallas-Fort Worth during the first 10 months of the year.
A Look at the Numbers
Around the various counties that comprise the Metroplex, foreclosures have been evaporating rapidly. Collin County saw the largest drop of them all, with a 56 percent decline in foreclosures year-over-year from October 2012. Denton County also recorded a 55 percent drop in foreclosures, while Dallas County marked a 45 percent drop.
This all adds up to excellent news for Dallas home owners, and according to real estate analysts, rising home prices are to credit for the large decline in foreclosure filings. Because prices are finally rising back to a point where home owners are no longer under water, they can finally sell their homes to interested buyers, or refinance into loans that allow them to retain ownership.
Additionally, for much of 2013, lenders have shown their affinity for short sales versus closing in on properties via foreclosure. This has helped a variety of buyers to remain in their homes versus the bank taking the home back on their books. Currently, just about 5 percent of Dallas-Fort Worth area home owners owe more than their home is worth.
And according to a new report by CoreLogic, a real estate data provider, less than 16 percent of Dallas homes were listed as distressed properties during the 12 months ending in July 2012.
To learn more about Dallas homes for sale, please watch our 60-second Dallas real estate market overview.