Debunking Foreclosure Headlines

If you’ve been following the news, you might have seen alarming headlines about rising foreclosures in the housing market. But before you start worrying about a repeat of the 2008 crash, let's dive into the facts.

The recent uptick in foreclosures might sound dramatic in the media, but it's crucial to put it in perspective. Comparing today's numbers to historic lows from 2020 and 2021 can create a misleading impression of the severity of the situation, particularly since they don't take into account the moratorium and forbearance program of 2020 and 2021, which helped homeowners and prevented the majority of foreclosures.

Now that these programs have ended, foreclosures are increasing, but it's a predicted trend, not a crisis. Data from ATTOM, a property data provider, shows in the graph below that foreclosure activity today is nowhere near the levels seen during the 2008 crash and are only around half of what they were before the pandemic. 

In 2023, there were around 357,000 foreclosure filings, a stark contrast to the over 1 million filings during the crash. This difference is largely due to homeowners having more equity in their homes today, preventing widespread foreclosures.

Experts agree that today's housing market is fundamentally different from the conditions that led to the crash. Most homeowners are in a stable position, and the rise in foreclosures isn't signaling an impending market collapse or a significant drop in home prices.

It is important to stay informed about the current housing market, and while major news corporations like to have sensational headlines they do not always have the full story. Your best resource for accurate information in your area is going to be an expert local realtor. Our team prides itself on staying at the forefront of the latest news and would be happy to speak with you about the market for our area. 

For more information about the national foreclosure numbers, take a look at this article from Keeping Current Matters.