4. Kansas City, Mo.-Kan.
> Pct. foreclosures vacated: 36%
> Total vacated homes: 305 (47th lowest)
> Average home price: $150,717 (42nd highest)
While housing prices in the country rose over the last two years, housing prices in the Kansas City metro area declined 9%. Additionally, the foreclosure rate in the first quarter of 2014 declined by more than 50% from the same period in 2012. Despite the drop in owner vacated homes and the falling foreclosure rate, home prices in the Kansas City metro area fell 9% since 2012, one of the higher declines in the country. Declining home prices may explain why more than one in 10 foreclosed homes in January 2014 failed to sell at auction and were repossessed by the bank, one of the higher rates on this list. This may be a sign that the housing market has not fully recovered.
3. Birmingham-Hoover, Ala.
> Pct. foreclosures vacated: 37%
> Total vacated homes: 428 (43rd highest)
> Average home price: $149,682 (44th highest)
The Birmingham-Hoover region was the only metro area on this list where the unemployment rate rose between the first quarters of 2013 and 2014. High unemployment may, in part, contribute to owner vacancies rising 19% between the first and second quarters of 2014 as owners who lost their jobs may have been afraid of going into foreclosure, as Blomquist suggested. In the first quarter of 2014, it took just 193 days to complete foreclosure proceedings. And while area home prices rose in recent years, they still remain among the lowest in the country.
2. Portland-Vancouver-Beaverton, Ore.-Wash.
> Pct. foreclosures vacated: 37%
> Total vacated homes: 804 (30th highest)
> Average home price: $251,888 (12th highest)
Low, declining home prices can lead to higher vacancy rates, as owners are more likely to give up on a property depreciating in value. Prices in the Portland region, however, are exceptionally high. Over the 12 months prior to this past May, a home in the area sold for more than $251,000 on average, among the most compared to other large metro areas. And prices are rising — the median home price in May was up 22% from the same period a year before, one of the larger increases among metro areas reviewed. While the region’s vacancy rate is second only to Wichita, there are signs of improvement for the Portland area. The average length of foreclosure proceedings in Oregon fell 20% over the year prior to the first quarter, which may make homeowners less likely to abandon a property.
1. Wichita, Kan.
> Pct. foreclosures vacated: 49%
> Total vacated homes: 146 (30th lowest)
> Average home price: $131,292 (39th highest)
There were only 301 properties in foreclosure in Wichita as of the second quarter of this year. Nearly half of those, however, had been abandoned by their owners, the highest vacancy rate among the nation’s largest metro areas. Like many metro areas where residents are abandoning their homes, Wichita is located in a state with a judicial foreclosure system, which tends to lengthen the proceedings. The average foreclosure process in the first quarter took 524 days in Kansas, up 34% from the same period a year before and among the higher wait times among major U.S. metro areas. Another factor contributing to the region’s high vacancy rate is likely low and depreciating home prices — as the value of a home decreases, the financial pressure of an unpaid mortgage will go up. Home prices in Wichita were 3% lower in May 2014 than they were in May of last year.