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Why Rising Foreclosure Headlines Aren’t a Red Flag for Today’s Housing Market
- tessmarquezhomes
- 3 days ago
- 2 min read
If you’ve been seeing headlines about foreclosure activity rising for months in a row, it’s understandable to feel concerned. On the surface, those stories can sound alarming, especially for anyone who remembers what happened during the 2008 housing crash.
But when you look beyond the headlines and examine the full context, a very different picture emerges.
👉 Rising foreclosure headlines are not a red flag for today’s housing market.What we’re seeing is not a crisis, it’s a return to normal market activity after years of unusually low levels.
Rising Foreclosure Headlines Explained: What the Data Really Shows
Yes, foreclosure filings are up. According to ATTOM data, filings increased about 32% year over year. That number often gets attention because it sounds dramatic. But numbers without context can be misleading.
Here’s what matters:
Today’s foreclosure levels are well within historically normal ranges
Activity remains far below pre-pandemic and 2008 crash levels
There is no evidence of a wave of distressed sales
During the housing crash, foreclosure filings exceeded 1 million per year. Today, even with the recent increase, filings are a fraction of that. When you compare current data to the last “normal” housing years (2017–2019), we’re simply moving back toward typical market behavior.
This is normalization, not a warning sign.
Why This Market Is Nothing Like 2008
One of the biggest fears driving today’s foreclosure headlines is the idea that history might repeat itself. But the fundamentals of today’s housing market are very different.
Stronger Lending Standards
Mortgage lending today is far more disciplined than it was in the mid-2000s. Risky loan products and widespread over-leveraging are no longer the norm.
More Qualified Borrowers
Most homeowners today went through stricter qualification processes, making widespread defaults far less likely.
Record Levels of Home Equity
This is the most important difference. Over the past several years, home values have risen significantly. Most homeowners now have substantial equity in their homes.
That equity acts as a financial cushion. If someone faces hardship, they often have options, such as selling the property, rather than being forced into foreclosure. In many cases, homeowners can sell and walk away with proceeds instead of debt.
That simply wasn’t true in 2008.
What Industry Experts Are Saying
Rob Barber, CEO of ATTOM, sums it up clearly:
“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels… foreclosure activity remains well below pre-pandemic norms and a fraction of what we saw during the last housing crisis.”
The key word here is normalization. While some households are under financial pressure, the data does not point to widespread distress or market instability.
Bottom Line: Rising Foreclosure Headlines Don’t Signal a Crash
Foreclosure activity is increasing, but within normal, healthy ranges. The housing market today is supported by stronger lending, more qualified buyers, and record homeowner equity.
The real problem isn’t the data.It’s the headlines, often designed to scare rather than explain.
That’s why having reliable context matters.
Understanding your options starts with accurate information.
📩 Contact me at TessMarquez.com | (626) 712-5156 or call/text anytime!
By Tess Marquez, Realtor & Probate Specialist | TessMarquez.com
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