NYC foreclosures hit highest level in nearly three years but remain below pre-pandemic numbers
- Foreclosures in NYC jumped to 373 cases in the first quarter of 2023
- Cases are still far below the 688 filings seen in the first quarter of 2020
Pre-foreclosure activity was up 13 percent quarter over quarter in Queens.
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Foreclosures in New York City during the first quarter of 2023 jumped to the highest level in 11 quarters with 373 cases, according to a new report from PropertyShark, which notes that since the foreclosure moratorium was lifted in early 2022, foreclosure activity in the city has been growing.
From the third quarter of 2020 through the fourth quarter of 2021 only 96 foreclosures were filed in the five boroughs, mostly in connection to non-mortgage liens, points out Eliza Theiss, senior writer with PropertyShark and author of the report.
By comparison, during the first quarter of 2022, when the moratorium was lifted, 81 foreclosures were filed and that number has continued to steadily rise, Theiss says.
While the 373 first-time cases filed in the first quarter of 2023 “marked a significant increase in foreclosure activity in just four quarters, the city’s caseload is still far from the 688 filings recorded in the first quarter of 2020 when cases were already dipping under the influence of the pandemic,” she says.
In comparison, in the first quarter of 2019, NYC had 870 first-time foreclosures.
Pre-foreclosure activity is down
NYC pre-foreclosure activity is trending in the opposite direction, decreasing quarter-over-quarter, with one exception: Queens, where lis pendens were up 13 percent quarter-over-quarter while citywide cases were down 8 percent. The slowdown was most evident in Manhattan, where pre-foreclosure filings dropped 37 percent quarter-over-quarter. But compared to the first quarter of 2020, citywide pre-foreclosures were up 52 percent to a total of 1,330 cases.
Where are the most foreclosures in NYC?
Foreclosures jumped at the highest rate in Manhattan, increasing by 32 percent in the first quarter of 2023 compared to the fourth quarter of 2022, representing an increase from 28 to 37 cases and nearly matching its pre-pandemic level. Nine cases were clustered on the Upper West Side.
However, Queens and Brooklyn have a higher volume of cases. Queens saw 171 cases in the first quarter of the year, more than double the number of cases in Brooklyn. The neighborhood of Jamaica had the highest concentration of first-time foreclosures with 20 new filings.
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