There’s a lot of misinformation out there about foreclosures. Some headlines may lead you to believe the housing market is in trouble — but the actual data tells a very different story. If you’re wondering whether we’re heading toward another foreclosure crisis like in 2008, the short answer is: we’re not.

Here’s what’s really happening — and what it means if you're planning to buy or sell this year.

Foreclosures Are Rising Slightly, but They’re Still Below Normal

Yes, foreclosure filings have gone up compared to recent years. But keep in mind: we’re coming out of an unusual period.
During the pandemic, a nationwide moratorium gave struggling homeowners relief. That led to artificially low foreclosure numbers between 2020 and 2022. Now that those protections have ended, we’re seeing a natural return to pre-pandemic levels.

📊 Key stat: According to ATTOM, foreclosures today are still less than 60% of what they were in 2019 — even with the recent increases.


The Current Market Is Nothing Like 2008

The biggest reason we’re not facing a repeat of the last crisis is simple: most homeowners today have equity — and lots of it.
Thanks to rising home values in the last few years, people who face financial hardship have the option to sell their home, pay off the mortgage, and avoid foreclosure entirely.

📈 Compared to 2008, when many homeowners were underwater, today’s market is much more stable and resilient.


What This Means for Buyers and Sellers

  • If you’re buying: Don’t count on a wave of deeply discounted foreclosures. That’s not the kind of market we’re in. Focus instead on finding a home that fits your needs and budget — and be ready to act when you do.

  • If you’re selling: Know that market conditions are still strong. With inventory still tight, your home can stand out — especially when priced right.


Bottom line:

The foreclosure map shows that while filings are rising from the extra-low levels of recent years, we’re still well below what’s considered “normal.” This is not a red flag — it’s a market correction.

📍Connect with a local agent today to understand what’s really going on in your area — and make confident moves this year.