"An important if often misunderstood component of a healthy housing market is a well-functioning foreclosure marketplace that efficiently and responsibly recycles distressed properties back into retail housing supply, often as affordable inventory. After several years of disruption, emerging supply and demand trends in the foreclosure auction marketplace indicate a return to more historically normal and sustainable patterns that will help restore balance and health to the broader residential real estate market in 2026."
"Completed foreclosure auctions increased 31 percent to a 10-quarter high in the third quarter of 2025, according to the latest Auction Market Dispatch published by Auction.com. Foreclosure auction volume increased from a year ago in 38 states and across all loan types: GSE, FHA, private, VA and USDA."
"The increasing foreclosure auction volume in 2025 represents a trend toward more historically normal and even healthy levels of foreclosure activity, coming off the unsustainably low levels of the last few years."
Completed foreclosure auctions rose 31% to a 10-quarter high in Q3 2025. Volume increased year-over-year in 38 states and across all loan types, including GSE, FHA, private, VA, and USDA. Q3 2025 auction volume remained at 56% of the Q1 2020 pre-pandemic benchmark for a properly functioning foreclosure market. The 2025 increases indicate a return toward historically normal and healthier foreclosure activity after recent unsustainably low levels. The year is on track for roughly 80,000 completed foreclosure auctions, about 2% of an estimated 4 million retail home sales, a level unlikely to destabilize the broader housing market. For context, 2010 saw roughly 1 million completed foreclosure auctions, about 27% of 3.6 million retail home sales.
Read at www.housingwire.com
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