New Data Shows Increase in Foreclosure Applications in the US Housing Market in October after Reaching Historic Lows in Recent Years.
Despite the current numbers still being relatively low, the continuous rise in foreclosure applications may indicate troubles in the real estate market.
According to data from real estate data and analysis company Attom, a total of 36,766 properties in the US were involved in some form of foreclosure application in October, including default notices, scheduled auctions, and bank repossessions.
Attom stated that this number was 3% higher than in September, 19% higher than in October 2024, and marked the eighth consecutive month of year-over-year increases.
The number of foreclosure initiations (the initial stage of the process) increased by 6% month-over-month and 20% year-over-year, while completed foreclosures (the final stage of the process) surged by 32% year-over-year.
Rob Barber, CEO of Attom, said in a press release, “Despite these increases, foreclosure activity remains far below historical peaks. The current trend seems to reflect a gradual return to normal levels as market conditions adjust, and some homeowners continue to grapple with soaring home prices and borrowing costs.”
Florida, South Carolina, and Illinois led the states in foreclosure applications nationwide.
In terms of properties already foreclosed, Texas, California, and Florida had the highest numbers, indicating that these states may see an increase in distressed property sales.
However, housing demand remains strong, particularly in the lower-priced segment, suggesting that these foreclosed properties may find buyers quickly.
Although national home prices have slightly declined, overall prices remain high.
Meanwhile, despite the Federal Reserve starting to cut rates, mortgage interest rates have not decreased significantly and remain close to recent highs.
Consumer debt has reached new record levels, delinquency rates on other types of consumer credit are rising, and the job market appears to be weakening—all factors that could lead to problems in the real estate market.
Rick Sharga, CEO of real estate market intelligence company CJ Patrick Co., mentioned, “These issues have not yet impacted mortgage performance—but it would be unrealistic to think that these trends, coupled with slowing home sales and declining home price appreciation, won’t lead to a slight uptick in delinquencies and defaults in the coming months.”
(Reference: CNBC)