Foreclosures drop to five-year low in N.J., N.Y. markets

PropertyShark, a provider of online real estate database and property research, said in its latest foreclosure report that the New York metro area, including 12 New York and 12 New Jersey counties, posted its slowest first quarter in five years as first-time foreclosures dipped 7% year-over-year to 1,503 cases.

The metro’s New Jersey markets slowed 8% year-over-year to 601 first-time filings.

Even so, the market was not without its extremes.

The sharpest increase in foreclosures in the metro was the 105% year-over-year surge in Monmouth County. The Jersey Shore county was the metro’s most active in New Jersey, with 88 total cases, with the number of foreclosures more than doubling from 43. Somerset County had the second-highest increase in foreclosures at 21% (29 from 24).

Sussex County had the biggest drop in foreclosures in the metro region for New Jersey counties with a 56% year-to-year decrease in first-time filings, tumbling to 15 from 34. The northwestern New Jersey county was followed by Morris County at -41% year-over-year (32 from 54) and Ocean County at -31% (60 from 87).

Foreclosures have fallen as New Jersey’s economy stabilized after the shock of the pandemic. New Jersey’s unemployment has been relatively stable at 4.6%, above the national rate of 4.1%. Leisure and hospitality and healthcare have been strong job sectors. The state’s housing market remains robust as New York City residents flee quality-of-life issues and high costs/taxes and seek better schools and a suburban lifestyle in New Jersey.