2024 Q3 Foreclosure Report: NYC Caseload Drops for Third Consecutive Quarter, Marks Least Active Period Since Q4 2022

Editor’s Note: PropertyShark has expanded foreclosure reporting to the wider New York metro. For the latest on foreclosures in NYC, Long Island, the Lower and Mid-Hudson Valley, as well as New Jersey foreclosures, see our New York Metro Foreclosure Report.

Key Takeaways:

• NYC foreclosures continue to slow with third consecutive quarter-over-quarter drop
• Single and two-family homes again make up 66% of cases, but two-family properties take lead
• Queens foreclosure rates trend down both quarter-over-quarter and year-over-year
• Manhattan claims most expensive residential auctions as 200 Chambers St. condo sells for $4.9 million
• Bronx foreclosures double year-over-year, but borough still logs only 40 cases
• Staten Island claims slowest foreclosure market in city for second time this year
• Canarsie zip 11236 moves city’s foreclosure hotspot from Queens to Brooklyn for first time since Q1 2022
• NYC totals 17 commercial foreclosures — more than second quarter’s 13 cases, but down 23% year-over-year

The NYC foreclosure market continues its sluggish trends with the third quarter logging 17% fewer first-time filings compared to year-ago figures, in addition to a 3% quarter-over-quarter decrease. In fact, this was NYC’s slowest foreclosure quarter since the end of 2022. Compared to pre-moratorium levels, Q3 2024 foreclosure rates were even more depressed, barely surpassing half the caseload of Q1 2020 (the last quarter unaffected by COVID postponements and suspensions).

But, beyond the surface, third-quarter foreclosures trends were more complex as the citywide decline was driven by the noticeable decrease in Queens foreclosures, paired with the slowdown of Brooklyn.

NYC foreclosure overview

NYC Foreclosure Rates Trend Down in Q3, Continue 2024 Decline

Q3 2024 also marked the third consecutive quarter-over-quarter decrease in NYC foreclosure rates — down 3% in Q3, following -14% and -8% quarter-over-quarter declines in Q2 and Q1, respectively.

Notably, compared to year-ago figures, the foreclosure market seemed even slower, logging double-digit decreases. More precisely, there were 354 first-time foreclosures in Q3 2024 — 17% fewer than during the same period last year. Both metrics were strongly driven by Queens foreclosure trends that have turned decidedly negative.

Specifically, Queens logged only 124 foreclosures in Q3 of this year — the lowest number since Q2 2022. Compared to last year’s figures, Q3 2024 was 26% slower. Similarly, quarter-over-quarter, Queens was down 23%. Meanwhile, Brooklyn’s current foreclosure rates were higher than in Q2, although they still logged a sharp 35% decrease year-over-year.

With the two boroughs comprising large amounts of NYC’s single and two-family stock, these were yet again the dominant asset types subject to foreclosures in Q3, totaling 66% of cases the same as the previous quarter. However, this time, two-family homes took the lead by accounting for 36% of NYC foreclosures, whereas single family homes took a backseat at 30% of all cases.

Queens foreclosures

Queens Foreclosures Drive Much of NYC’s Slowdown in Q3

Historically, Queens has claimed the largest share of foreclosures of all five boroughs due to its characteristically low-density residential stock. Yet, in Q3, Queens barely maintained that lead after totaling only 124 first-time cases — just 15 more than Brooklyn. As a result, the third quarter of this year was the slowest for Queens foreclosures in nine quarters.

Another significant change potentially also stemming from the slowdown in the Queens foreclosure market was that the borough no longer claimed the zip code with the highest number of foreclosures for the first time in 10 quarters. In fact, zip 11420 in South Ozone Park totaled nine first-time filings — half as many as the Brooklyn zip code that claimed the highest concentration of cases this quarter.

Queens was also the setting for the second most expensive NYC foreclosure auction in Q3 with a 2,475-square-foot two-family frame in Richmond Hill going under bank ownership for $1.23 million (the equivalent of the outstanding foreclosure lien).

Brooklyn foreclosures

Brooklyn Home to City’s Foreclosure Hotspot with Canarsie Zip

Although Brooklyn also logged a significant decrease in foreclosure activity compared to year-ago figures, NYC’s foreclosure epicenter nevertheless switched from Queens to Brooklyn for the first time in 10 quarters. In particular, zip code 11236 in Canarsie logged 17 first-time foreclosures — more than the foreclosure hotspots of Staten Island and the Bronx combined.

In fact, the borough’s most expensive foreclosure auction was set in the same zip code, with a 1,472-square-foot two-family frame went under bank ownership in early August. The 1920s semi-attached home went under the ownership of Deutsche Bank for $968,243 (the property's outstanding lien amount). Currently, the most expensive foreclosure auction scheduled for Q4 is a 3,045-square-foot home in Mill Basin, which is headed to the block with a $2.1 million lien.

Overall, the Brooklyn foreclosure market presented a slightly contradictory picture with year-over-year trends showing a significant 35% drop in first-time filings. Even so, current foreclosure rates were trending up quarter-over-quarter after rising 15%, although it must be noted that the 95 cases filed in Q2 represented a conspicuously slow quarter for the borough.

As a matter of fact, Q2 2024 was the slowest quarter in a year, and Q3 2024 saw just a modest uptick with only 14 additional cases.

Manhattan foreclosures

Manhattan Remains Only Market with Pre-Pandemic Foreclosure Rates

As has been the case for the past year, Manhattan remained the only market where foreclosure data showed a return to pre-pandemic activity after logging 42 cases in the third quarter of the year. Here, Manhattan’s foreclosure report for Q3 shows timid, but decided growth both compared to the previous quarter (+5%) and compared to year-ago figures (+14%).

However, the Manhattan foreclosure market accounted for only 12% of NYC foreclosures in the third quarter. As such, the rise in case incidences in Manhattan was negated (and then some) by the slowdowns in Queens and Brooklyn.

Notably, Manhattan was also the setting for the two of the most expensive foreclosure auctions of the quarter. First, a 2-bedroom condo at 200 Chambers St. sold for $5.35 million as the most expensive foreclosure auction of the third quarter. It was followed by a 1-bedroom unit at Trump World Tower that changed hands for $1.02 million as the third-priciest foreclosure sale in Q3.

At the same time, the borough’s foreclosure center was the least active among the five boroughs: Zip 10029 in East Harlem totaled only four cases — one-quarter of what the city’s hotspot in Brooklyn logged.

Bronx foreclosures

Bronx Foreclosures Double in 1 Year, but Borough Still Among Slowest Markets in the City

With 40 first-time foreclosures filed in the third quarter, the Bronx foreclosure market marked its second-most active quarter since the lifting of the foreclosure moratorium. In fact, current foreclosure rates in the Bronx were twice as high as what the borough experienced in Q3 2023. And even quarter-over-quarter, the borough’s foreclosure market rose by 21%.

Meanwhile, the borough’s foreclosure hotspot remained steady quarter-over-quarter as zip 10462 in the Parkchester, Bronxdale and Van Nest area totaled eight new cases after logging six new filings in the previous quarter. Whereas zip 10462 tied with zip 10463 as the borough’s foreclosure hotspots with 13 each last year, 10462 has already logged more first-time filings in the last two quarters than it did during the entirety of 2023.

Staten Island foreclosures

Staten Island Becomes City’s Slowest Foreclosure Market in Q3

For the third time since the lifting of the foreclosure moratorium in early 2022, Staten Island was the least-active foreclosure market in the city. The borough also logged the third-lowest number of cases for that timeframe in Q3.

With 39 new cases filed between July and September, Staten Island slid in just below the 40 cases seen in the Bronx. That said, the Staten Island foreclosure market still experienced some increase in activity with current foreclosure rates up 11% year-over-year, as well as 3% higher quarter-over-quarter. 

In another first since the post-COVID return of foreclosure activity, the borough’s foreclosure hotspot was in zip 10312. Covering parts of Arden Hights, Annadale, Eltingville, Huguenot and Woodrow, zip code 10312 saw seven first-time foreclosures filed in Q3 — just one less than the eight new cases observed in the Bronx’s foreclosure center.

Top NYC auctions Q3 2024

Top NYC Auctions: Looking Back at Q3 2024

As our third quarter foreclosure report shows an even slower market than the second quarter, Q3 still managed to log one foreclosure auctions north of $5 million. Specifically, a 3,204-square-foot, 2-bed, 2-bath condo at 200 Chambers St. changed hands for $5.35 million or $1,669 per square foot — well below the neighborhood’s $2,926 per square foot median sale price.

The second most expensive residential foreclosure auction was in Queens, where a 2,475-square-foot two-family frame reverted to bank ownership for $1.23 million (the equivalent of the outstanding foreclosure lien). That put the Richmond Hill home’s price per square foot at $498, well above the neighborhood’s $391 per square foot median sale price.

Top 5 Most Expensive Residential Foreclosures Sold in Q3 2024

Rank	Borough	Address	Sale Amount	Sale Date	Lien Ammount	Auction Date	REO
1	Manhattan	200 Chambers St. #26C	$5,347,359	8/23/2024	$4,900,532	7/17/2024	No
2	Queens	94-20 115th St.	$1,233,237	7/19/2024	$1,233,237	7/5/2024	Yes
3	Manhattan	845 United Nations Plz. #19B	$1,018,250	8/22/2024	$1,799,959	7/24/2024	No
4	Brooklyn	1440 East 91st St.	$968,243	8/15/2024	$968,243	8/1/2024	Yes
5	Brooklyn	1533 Brooklyn Ave.	$955,000	8/28/2024	$1,499,841	7/18/2024	No

Likewise, commercial foreclosure activity in NYC was also sluggish in Q3 2024: There were only 17 individual commercial foreclosures in the third quarter, and year-over-year figures were down 23% across the city, even though there were four more cases than in the previous quarter. In this case, the bulk of commercial foreclosures were filed in the Bronx* both in the second and third quarters of this year.

Still, the most expensive commercial foreclosure to sell in the third quarter was a 71,180-square-foot mid-rise in Manhattan that changed hands for $22.8 million. It originally hit the block with a $57.6 million lien. The 12-story Koreatown building currently includes 65,480 square feet of office space, plus 5,700 square feet of retail spread across 16 commercial units.

In fact, Manhattan was also the setting for the second- and third-most expensive commercial foreclosure sales, both in SoHo. First, a 3,151-square-foot retail unit at 430 Broome St. went to REO ownership for $10.45 million, as did the multi-story retail property at 440 Broadway. The 5,771-square-foot, 1910 build went under new ownership for $8 million in mid-September, one month after hitting the block with a $10.7 million lien.

Top 5 Most Expensive Commercial Foreclosures Sold in Q3 2024

Rank	Borough	Address	Sale Amount	Sale Date	Lien Ammount	Auction Date	REO
1	Manhattan	29 W 35th St.	$22,761,100	09/14/2024	$57,612,459	8/21/2024	No
2	Manhattan	430 Broome St. #1	$10,454,715	9/20/2024	$9,703,521	8/21/2024	Yes
3	Manhattan	440 Broadway	$8,000,000	8/14/2024	$10,735,729	7/17/2024	Yes
4	Brooklyn	236 Schenectady Ave.	$790,000	9/10/2024	$3,250,108	7/18/2024	No
5	Brooklyn	840 Cleveland St.	$731,000	8/28/2024	$674,733	7/25/2024	Yes

Top Q4 2024 scheduled auctions

Top NYC Auctions: Looking Ahead at Q4 2024

Looking ahead at the city’s priciest foreclosed residential properties headed to the block, the highest lien amount — $2.1 million — is tied to a two-story, 3,045-square-foot colonial in The Bay Front Estates in Mill Basin, which is headed to the block on October 31. The second-highest lien is associated with a 3,190-square-foot 1920s build in Kew Gardens that has been rescheduled to go up in early November.

Top 5 Most Expensive Residential Foreclosures Scheduled for Auction in Q3 2024

Rank	Borough	Address	Lien Ammount	Occurrence	Auction Date
1	Brooklyn	64 Harbor Dr.	$2,101,436	rescheduled	10/31/2024
2	Queens	116 Audley St.	$1,718,584	rescheduled	11/8/2024
3	Queens	57-65 75th St.	$1,568,659	first-time	11/1/2024
4	Brooklyn	35A Prospect Pl.	$1,526,944	rescheduled	11/7/2024
5	Brooklyn	13 Columbus Pl.	$1,506,082	rescheduled	11/14/2024

In terms of commercial auctions, the highest lien is tied to a four-parcel foreclosure in Kips Bay. Set to go to auction in mid-November with a $34 million lien, the package deal comprises one 33-unit walk-up apartment buildings and three 22-unit walk-ups. Units in the four buildings average between 445 and 513 square feet in size.

The next-highest lien is associated with the retail component of 1 Hanson Place in Fort Greene. The 40,139-square-foot retail space was purchased for $18 million back in 2015 but is now headed to auction with a $23.8 million lien.

Top 5 Most Expensive Commercial Foreclosures Scheduled for Auction in Q4 2024

Rank	Borough	Address	Lien Ammount	Occurrence	Auction Date
1	Manhattan	208 E 25th St.	$34,152,383	first-time	11/13/2024
	Manhattan	210 E 25th St.	$34,152,383	first-time	11/13/2024
	Manhattan	212 E 25th St.	$34,152,383	first-time	11/13/2024
	Manhattan	214 E 25th St.	$34,152,383	first-time	11/13/2024
2	Brooklyn	1 Hanson Pl #RETL	$23,832,503	resqueduled	10/23/2024
3	Manhattan	330 W 86th St.	$5,542,013	first-time	11/6/2024
4	Brooklyn	3014 Glenwood Rd.	$3,661,359	first-time	10/24/2024
5	Brooklyn	346 7th Ave.	$2,878,864	first-time	11/14/2024

Methodology

Having tracked foreclosure listings for more than a decade, PropertyShark is the only service in New York that guarantees 100% coverage of the local foreclosure market. Because auctions are frequently postponed and/or rescheduled, the statistics referenced in this report include only first-time foreclosures in order to avoid over-reporting the number of distressed properties in the city.

This report focuses exclusively on residential properties (single and two-family homes; condos; and co-op units) that were scheduled for auction for the first time in Q3 2024.

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Correction

• The bulk of commercial foreclosures both in Q2 and Q3 of 2024 took place in Brooklyn. A previous version of this article incorrectly reported the majority of commercial foreclosures in Q2 and Q3 as being situated in the Bronx.