Analytics company CoreLogic Inc. has reported that delinquency and foreclosure rates in the greater New York City area rose at the end of 2011, bucking a national trend toward reductions in both categories.
In December 2011, foreclosure inventories hit 4.6 percent, a 0.6 percent increase from the previous year, while delinquency rates hit 7.9 percent in the state of New York, CoreLogic said in its February foreclosure report.
The news is even worse in the areas surrounding New York City. While Manhattan itself appears to be largely immune to the trend, surrounding boroughs and suburbs are in worse shape, according to a CoreLogic map published by The Real Deal.
Beneficiaries of this news could include prospective home buyers and investors looking to pick up distressed properties, as the combination of low mortgage rates and rising foreclosure inventories should keep prices low for the immediate future.
Why the increase? Some reports have suggested that, as property values slowly climb out of the basement, mortgage providers have more financial incentive to initiate foreclosure proceedings. What do you think is behind the trend-defying rise in NYC-area delinquencies and foreclosures?