Foreclosures Won't Crash Housing

You may have come across recent headlines highlighting an uptick in foreclosures and bankruptcies, fueling concerns for potential home buyers and sellers like yourself. While it's natural to feel uneasy given this news, it's crucial to understand that current market data suggests the housing sector remains resilient, steering clear of an impending crisis.

Foreclosure Activity Rising, but Less Than Headlines Suggest

As the foreclosure moratorium concluded, many predicted a spike in foreclosure rates. However, an increase in foreclosures doesn't necessarily signify a distressed housing market.

To shed light on the current state of foreclosures, we've sourced data from ATTOM, a leading property data provider. The chart below traces the history of properties with foreclosure filings from 2005 to the present. It reveals a significant decline in foreclosure rates since the 2008 housing crisis.

By understanding these trends, you can make informed decisions when navigating today's real estate market.

Increasing Foreclosure Filings Approach Pre-Pandemic Levels: Why Equity Can Be a Lifesaver in 2023. As the foreclosure rate gradually rises, it remains significantly lower than the 2008 housing market crash. Today's American homeowners are in a stronger position due to substantial equity in their properties, offering a crucial avenue to sell and prevent foreclosure.

Bottom Line

Right now, it's crucial to understand the data. Foreclosures are rising, but this indicator is not signaling trouble that would cause another crash.