Housing Trends In Cuyahoga County __________ Is The Foreclosure Crisis Over? It Depends On Where You’re Standing. Frank Ford Senior Policy Advisor, Thriving Communities Institute Chair, Vacant and Abandoned Property Action Council June 17,

Foreclosure  Vacancy and Abandonment  Blighted Homes  Loss of Market Value  Lost Homeowner Equity & Property Tax Base Foreclosure  Economic Recession  Unemployment  Inability to Pay Mortgage and Property Tax  More Foreclosure Domino Effects of Large Scale Foreclosure 2

In 2007 mortgage foreclosures peaked at four times their rate in Except for a brief upswing in 2012, mortgage foreclosures have now declined to 1.6 times the 1995 rate, and are on track to reach 1995 levels in one to two years. ? 3

Foreclosure filings have declined in all regions of the County. For a number of years the Outer and West Inner Suburbs increased while the rest of the county declined, but they are now also on a downward trend. 4

Mortgage foreclosure filings have even declined in Slavic Village, once viewed as “ground zero” for the foreclosure crisis in America. 5

Does This Mean The Foreclosure Crisis Is Almost over? Answer: “No” Four reasons 1) 90+ Day mortgage delinquencies remain high. 2) Property tax delinquency is at alarming levels. 3) Vacancy and blight remain high. 4) Housing recovery slow in many communities. 6

Foreclosure filings in Court are the visible manifestation of the crisis. But less visible, mortgage delinquency is still nearly three times the 1995 rate. 7

Economic distress from the foreclosure crisis has impacted homeowners in multiple ways. Property tax delinquency on residential property has more than doubled over the past six years. 8

Although the number of residential delinquent parcels has increased, the overall increase in property tax delinquency is more due to the growing delinquency on each parcel. 9

While residential property tax delinquency was increasing, the County Treasury staff was cut by more than half. 10

Over the past six years vacant homes in Cuyahoga County have remained at high levels. 11

The largest number of vacant homes are in the East Side of Cleveland and the East Inner Ring Suburbs. 12

Approximately 10,000 of the vacant homes in Cuyahoga County may require demolition, and 80% of those are believed to be in the City of Cleveland. 13

Demolitions have been averaging $10,000 per house. 10,000 demolitions will require $100 Million, twice the $50 Million available. 14

Blight From Foreclosure And Abandonment Continues To Undermine Housing Value 15

Housing market recovery varies inversely with housing distress. Areas with the greatest blight and abandonment have the weakest recovery. 16

Median sale prices are lowest in the areas with the greatest vacancy and blight. 17

Even when only looking at arms length sales on properties with no history of foreclosure in the past 20 years, these “healthy” properties are still impacted by the blight around them. 18

The majority of residential parcels in Cuyahoga County, including those in areas most associated with foreclosure, have no history of Sheriff Sale since Source: NEO CANDO and NST at Case Western Reserve University. 19