$\"The$ \n

It\u2019s been nearly two decades since the 2008 housing crash, but the word \u201cforeclosure\u201d can still make people uneasy. And if you\u2019re planning a move, you may be wondering if more foreclosures will flood the market with homes for sale \u2013 especially if you\u2019ve seen the headlines lately.<\/p>\n

Buyers may be hoping for a rush of bargains<\/u><\/a>. Sellers may be bracing for more competition<\/u><\/a>. The latest data points to neither, and knowing why can help you plan your next move with confidence.<\/p>\n

A Modest Rise from a Low Starting Point<\/strong><\/h4>\nCompleted foreclosures are up 33%<\/u><\/a> from last year, according to ATTOM. That sounds like a big leap, but context helps.<\/p>\n
Even with that increase, foreclosures are still about <\/strong>26%<\/u><\/strong><\/a> below where they were in the first half of 2020.<\/strong><\/p>\n
Zoom out further, and today\u2019s activity is a small fraction of what the market saw during the 2008 crash. Lenders completed about 28,000<\/u><\/a> foreclosures in the first half of 2026, according to ATTOM. Compare that to the crash years in red, when lenders often completed more than 200,000 in the span of a few months (see graph below<\/em>):<\/p>\n
$\"a$ <\/p>\n
***Experts say today\u2019s numbers reflect a housing market that\u2019s still in good shape. As Rob Barber, CEO at ATTOM,* *explains<\/u><\/a>:<\/p>\n***
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\u201cWhile some homeowners are still facing financial challenges, overall <\/em>foreclosure volumes remain well below historical norms and the broader housing market continues to demonstrate resilience<\/em><\/strong>.<\/em>\u201d<\/p>\n<\/blockquote>\n
And here\u2019s why we can absorb the slight uptick in foreclosures we are seeing.\u00a0<\/p>\n
Homes for Sale Are Back in a Balanced Range<\/strong><\/h4>\n
During the crash, a lot of homeowners either lost their homes to foreclosure or were forced to sell, which left the market overwhelmed with houses for sale. That isn\u2019t happening now.<\/p>\n
One way to see this is through months\u2019 supply, which measures how long it would take to sell every home on the market at the current pace. Four to six months is considered balanced.<\/p>\n
Right now, it\u2019s about 4.8<\/u><\/a> months, according to the National Association of Realtors<\/em> (NAR). That\u2019s pretty well-balanced, and less than half of where it peaked around the last crash (see graph below<\/em>):<\/p>\n
$\"a$ <\/p>\n
If foreclosures were really surging, you\u2019d see it in the number of homes for sale. As Logan Mohtashami, Lead Analyst at HousingWire<\/em>, explains<\/u><\/a>:<\/p>\n
\n
\u201c. . . a surge of actual foreclosures in 2026 would have easily put the inventory data much higher in 2026.<\/em>\u201d<\/p>\n<\/blockquote>\n
Equity Gives Today\u2019s Homeowners Options<\/strong><\/h4>\nEquity<\/u><\/a> is a big reason there\u2019s no surge of distressed sales. Data from the Census Bureau<\/u><\/em><\/a> and ATTOM<\/u><\/a> shows nearly two in three homeowners have paid off their mortgage or have more than 50% equity. And Cotality<\/em> says the average homeowner has about $310,000<\/u><\/a> in equity.<\/p>\n
If a homeowner with equity hits a rough patch, they can usually sell their house, pay off the loan, and walk away with money in their pocket instead of facing foreclosure. That\u2019s an option many people didn\u2019t have during the crash. According to HousingWire<\/u><\/em><\/a>, nearly one in four homes were underwater back in 2010.<\/p>\n
Being underwater means owing more on your mortgage than your home is worth, which makes selling a lot harder. Today, just 2%<\/u><\/a> of homeowners are considered seriously underwater (see graph below<\/em>):<\/p>\n
$\"a$
Not every homeowner has that kind of equity, but most do, and that\u2019s what puts a ceiling on how high foreclosures can go.<\/p>\n
Bottom Line<\/h3>\n
If rising foreclosures have you questioning where the housing market is headed, the data says it\u2019s in good shape. The supply of homes for sale is balanced, and most homeowners have plenty of equity.<\/p>\n
Have questions about what you\u2019re seeing online, your local market, or about how much equity you have? Talk to a local real estate agent.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
It\u2019s been nearly two decades since the 2008 housing crash, but the word \u201cforeclosure\u201d can still make people uneasy. And if you\u2019re planning a move, you may be wondering if more foreclosures will flood the market with homes for sale \u2013 especially if you\u2019ve seen the headlines lately. Buyers may be hoping for a rush […]<\/p>\n","protected":false},"author":1,"featured_media":6801,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-6800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t