Real Estate Foreclosures Jump 14% (But it’s Ok)
Real Estate Foreclosures Spiked, But This Isn’t 2008
Real Estate Foreclosures are up 14% year-over-year. This is the largest increase in foreclosure filings since the Great Financial Crisis, as reported by ATTOM Data Solutions. While any uptick in foreclosures warrants attention, it’s essential to contextualize these figures within the broader housing market landscape. Because, it’s really no big deal at all. (*maybe)
Understanding the Numbers
In April 2025, there were 36,033 Real Estate foreclosure filings across more than 3,000 U.S. counties. This represents a significant increase from the previous year. However, it’s crucial to note that these numbers remain well below the peaks experienced during the Great Financial Crisis (GFC) of 2008, when monthly foreclosure filings often exceeded 300,000.
Its also important to consider the next step after filing, is repossessions. If there are lots of filings, but few repo’s, its no big deal in the grand scheme of things. But, lenders repossessed 3,580 U.S. properties through completed foreclosures (REOs) in April 2025, this is up 23.3 percent from a year ago. So, that’s not good.
The most repossessed cities in April of this year were:
Chicago, IL (220 REOs)
Atlanta, GA (213 REOs)
New York, NY (143 REOs)
Houston, TX (114 REOs)
Philadelphia, PA (86 REOs).
So while repossessions and foreclosures have spiked, its not the end of the housing world.
Debunking the ‘Housing Doomsday’ Narrative
Some commentators have expressed concerns about a looming housing market collapse. Youtube is filled with doomsday predictions. Most of this is click bait, so I wont link to it here. And while such statements capture attention, they dont fully reflect the current market dynamics. Some segments and regions are doing quite well. For example, mansion Sales are actually on fire right now, and there is a mansion boom as I wrote earlier this week.
Key Differences from the GFC
Several factors distinguish today’s housing market from that of 2008.
Stronger Lending Standards:
Post-GFC regulations have led to more stringent lending practices, reducing the prevalence of risky mortgages.
Low Inventory Levels:
The current housing shortage supports home prices, contrasting with the oversupply issues of the past.
Economic Indicators:
Broader economic metrics, such as employment rates and consumer spending, remain relatively stable.
Implications for Real Estate Professionals
For agents and brokers, it’s important to know that strange things are a foot and that real estate foreclosures are on the uptick. It’s vital to communicate these nuances to clients, especially when they see the same click bait we do. While staying informed about market trends is essential, it’s equally important to provide balanced perspectives that prevent unnecessary panic, anxiety or a delay in moving.
Leveraging Predictive Tools
While the recent rise in filings and foreclosures is notable, it doesn’t signal an impending housing crisis akin to 2008. By understanding the reality of the underlying factors and leveraging predictive tools, real estate professionals can navigate the current market with confidence and provide valuable guidance to their clients.
At Revaluate, we specialize in identifying individuals likely to move within the next 3 to 6 months. By focusing on life events and behavioral data, our platform enables real estate professionals to engage with potential clients proactively, regardless of broader market fluctuations.
Get a free audit of your database here.
