An improved economy has led to foreclosure rates dipping below pre-recession levels nationally, and Minnesota is among the highest-performing states.
This is the takeaway from new data released by RealtyTrac, a real estate data company monitoring foreclosures across the country.
Nationally, there has been a 62 percent reduction in filings from the record 2,871,891 foreclosures of 2010.
In an analysis of data from last year, Minnesota was tied with Alaska for having the lowest inventory of foreclosures – 0.3 percent of mortgaged properties in both states were foreclosed on. Arizona, Colorado and Utah rounded out the top-five states with the fewest foreclosures, each with 0.4 percent of properties in filings.
On the opposite end of the spectrum, states with the highest foreclosure rates included New Jersey (4.4 percent), New York (3.5 percent), Hawaii (2.5 percent), Florida (2.4 percent) and Washington D.C. (2.4 percent).
While foreclosure trends are encouraging nationally as well as at the state level, improved market conditions have not been uniform. And the City of Minneapolis can be viewed as a microcosm of disparate outcomes across areas.
RealtyTrac reports that there are currently 6,406 properties in some stage of foreclosure in the city. While that number may seem high, the number of new filings for December was 23 percent lower than last year.
For Camdenites, this bit of encouraging news is offset by fact that foreclosures continue to disproportionately impact the Northside.
While roughly one in every 1,696 properties is in foreclosure citywide, rates are significantly higher in North Minneapolis ZIP codes:
55411 – Near North and Jordan: one in 410 properties
55412 – Victory, Webber-Camden, Cleveland, Folwell, McKinley: one in 414 properties
55430 – Shingle Creek and Lind Bohanon: one in 744
Data from the city’s Community Planning and Economic Development department reaffirms this picture.
In the first three quarters of last year, the most recent time period for which data is available, foreclosures were highest in Ward 4 (105 filings) which covers the Camden area; and Ward 5 (49 filings). The total of 154 represented 41 percent of all filings in the city during the period. For additional perspective, more than two-thirds of the city’s other wards saw fewer than 20 foreclosures over that period.