Editor’s Note: Each Friday, WRAL TechWire takes a deep dive into the Triangle’s real estate markets, including tracking mortgage rates as of today and an increasing rate of foreclosures, topics of this week’s reports.  And the author of the report, WRAL TechWire reporter Jason Parker,  who is a licensed real estate agent in North Carolina, works with journalists from WRAL.com to track and present market data and report on how people are experiencing the region’s changing real estate markets.  These special reports will use the category tag “Triangle Real Estate” or “Triangle Real Estate Market.” 

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RALEIGH – The total number of foreclosure proceedings in Wake County has increased by 425% since last year, according to the latest data from ATTOM Data Solutions. And that’s a return to pre-COVID pandemic levels.

Things could be worse.

Jacksonville, North Carolina, has the second highest foreclosure rate in the country, according to the latest data.  Fayetteville, which was recently ranked among the nation’s top seller’s markets for real estate, also ranked among the top ten metropolitan regions in the nation when it comes to the rate of foreclosure proceedings.

There have been 481 total foreclosures proceedings in Wake County begun thus far in 2022, through August 31, compared to 134 total in the same time period in 2021.

In August 2021, there were 20 total foreclosure proceedings begun in Wake County, whereas in August 2022, there were 105 such proceedings, according to the data.

Data available about Durham County show that foreclosure starts surged by 75% to 28 in August compared to 16 in August 2021. There were only five foreclosure starts in August 2020.

Nationally, foreclosures also are soaring. “Lenders started the foreclosure process on 23,952 U.S. properties in August 2022, up 12 percent from last month and up 187 percent from a year ago,” ATTOM reports.

Foreclosures are up 182% in Wake, but high equity and high demand mean most of those at risk will sell, not lose homes entirely

Triangle vs. nation

Nationwide, foreclosure starts are back to pre-pandemic levels, according to ATTOM Data Solutions, which released a report this week.

“Two years after the onset of the COVID-19 pandemic, and after massive government intervention and mortgage industry efforts to prevent defaults, foreclosure starts have almost returned to 2019 levels,” said Rick Sharga, executive vice president of market intelligence at ATTOM in a statement. “August foreclosure starts were at 86 percent of the number of foreclosure starts in August 2019, but it’s important to remember that even then, foreclosure activity was relatively low compared to historical averages.”

In April 2022, foreclosures were up 182% year-over-year in Wake County.  But since April, the number of foreclosures has increased.

Here’s what has happened in Wake County.

Foreclosures in Wake County

Year-over-year percentage change in the total number of foreclosure starts in Wake County, Jan. 2018-Aug. 2022. Data source: ATTOM Data Solutions. Chart: WRAL TechWire.

Foreclosures in Wake County

In 2017, Wake County had 2,626 foreclosure starts, according to the ATTOM data.  And in 2018, there were 2,177.

By 2019, the total fell to 1,794 total foreclosure starts, as home values increased and the number of homeowners in Wake County considered equity rich had increased, according to ATTOM.

But then came the onset of the COVID-19 pandemic in March 2020, and with it, a moratorium on foreclosure activity.

Not only did foreclosure activity slow, but the Triangle’s housing market skyrocketed even higher, as inventory dropped to historically low levels while buying demand intensified.

Many Triangle homeowners are now ‘equity rich;’ here’s how to cash in

In 2020, there were just 628 total foreclosure starts, and in 2021, even as the foreclosure moratorium came to an end, there were only 293 total foreclosure starts with 134 of those coming in the first eight months of the year.

But now, though the first eight months of 2022, there have been 481 foreclosure starts in Wake County, with the 105 foreclosure starts in August the most in one month since there were 127 foreclosure starts in March 2020, the month where the COVID-19 pandemic swept across the United States and North Carolina.

Wake County foreclosure starts are returning to pre-COVID levels

Total foreclosure starts in Wake County, January 2017 – August 2022. Data: ATTOM Data Solutions. Chart: WRAL TechWire.