Rise in foreclosures in Florida and Texas due to high costs, but the states remain attractive for homebuyers because of increased housing inventory.
Florida and Texas Rise in Foreclosures While National Rates Drop
According to the published article in The Latin Times, rise in foreclosures in many cities in Florida and Texas because of higher property taxes, interest rates, and insurance costs. This makes it hard for people to pay their mortgages or sell their homes. Data from Attom, shared by Bloomberg, shows a 37%rise in foreclosure filings in Houston during the first quarter. Orlando, Tampa, and Miami are also seeing more foreclosures.
Most of the country is seeing fewer rise in foreclosures, but Florida and Texas are different. Rob Barber, CEO of Attom, said that high unemployment and low home equity usually cause more foreclosures, but that’s not happening here. Many people in these states bought their homes recently and don’t have enough home equity to sell and pay off their loans. With mortgage rates over 7%, selling homes to repay loans is getting harder.
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37% Rise in Foreclosures: Why Florida and Texas Homeowners are Struggling Amid Higher Costs and Interest Rates (PHOTO: Bloomberg)
Florida and Texas Still Good for Homebuyers Despite Rise in Foreclosures
Furthermore, even though rise in foreclosures, Florida and Texas are still good places to buy homes. A Zillow report says these states have some of the best cities for buyers, like Houston, Austin, San Antonio, Jacksonville, Orlando, and Tampa. Strong home construction in these areas has helped increase the number of available homes, making it easier for buyers. This means there is less competition for homes now compared to the early pandemic period, even though the overall market still favors sellers.
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