Shielding activity increases in Q1 in the midst of the feeling of economic ‘pressure’
Shielding starts with the growth with double digits
“After three consecutive neighborhoods of decline, the shielding activity was checked in the first quarter of 2025, with remarkable growth in both starts and completion,” Barber said. “Although levels remain among historical averages, the quarterly growth suggests that some homeowners may start to feel the pressure of continuous economic challenges.”
Strong positions of equity “, however, continue to help buffer in many markets against a larger peak in need,” he added.
The number of properties that started the shielding process reached 68,794 in the first quarter, an increase of 14% compared to the previous quarter and 2% on an annual basis.
States that demonstrate the largest year-on-annual increases of shielding start were Kansas (117%), Delaware (58%), Oklahoma (45%), Utah (42%) and Wyoming (33%).
Under metropolitan areas with a population of 200,000 or more, Chicago started with 3,789 executions, followed by New York (3,566), Houston (3,046), Miami (2,028) and Philadelphia (1,985).
Nationally, one in 1,515 residential units had a shield in the first quarter. Delaware had the highest percentage on one in every 761 units, followed by Illinois (1 in 857), Nevada (1 in 874), Indiana (1 in 976) and South Carolina (1 in 1,021).
Columbia, SC, registered the highest shielding percentage under metro lines (1 in 683), with Lakeland, FLA. (1 in 694) and Bakersfield, California (1 in 718) not far behind.
Bank repetitions up, shortening shortening periods
Lenders have taken back 9,691 properties via completed preventments (REO) during the first quarter – an increase of 8% compared to the previous quarter, but 4% decrease compared to a year ago.
California led with 944 REOS, followed by Texas (938), Illinois (712), Pennsylvania (711) and Michigan (665).
The average time to close decreased to 671 days in the first quarter, by 12% compared to the previous quarter and 9% compared to a year earlier, which continued a trend that started in mid -2020.
Louisiana had the longest average shielding time line on more than 3000 days, followed by Hawaii (2,274), Kentucky (1,993), Wisconsin (1,952) and New York (1,910). At the shorter end, New Hampshire (110 days), Texas (116) and Wyoming (136) registered the fastest completion.
March 2025 Snapshot
March saw 35,890 property with shielding requests, an increase of 11% compared to February and an increase of 9% compared to March 2024. One in 3,965 residential units received an archiving nationally that month.
States with the highest monthly rates include Delaware (1 in 2,256), Nevada (1 in 2,274), Illinois (1 in 2,484), Indiana (1 in 2,505) and Connecticut (1 in 2,616).
The shielding starts in March to 25,070, an increase of 10% from February. Completed executives have risen considerably with 22% month-over-month and 37% compared to March 2024, with 3,687 houses that were rejected by lenders.
Despite the rises, Attom emphasized that shielding activity remains far below pre-buildings, although constant economic uncertainty could push more borrowers in need as 2025 unfolds.
