Weekly Special | March 17, 2025

8% Of Listings Are Distressed

The percentage of properties listed for sale due to distressed situations (foreclosure, pre-foreclosure, and short sales) has doubled since 2021, does this mean a foreclosure crisis is brewing?

Today’s graph illustrates how some self-proclaimed real estate “experts” use misleading narratives to gain attention. What can we learn from this data?

 The share of distressed properties has indeed doubled since 2021.

 At 8.2%, this share sits much closer to its lowest point of 4.1% than its highest point of 38.9%.

 Today’s 92 distressed listings are 88% fewer than the 748 observed during the housing bubble recovery phase.

All three points are correct, yet the second and third explain the real situation. The VA ended its foreclosure moratorium on December 31, 2024, causing several years of postponed foreclosures to reach the market in the past three months.

Another key observation is that home values have increased about 40% since 2021, so owners can usually sell their homes, cover their debts, and retain some equity.

We see no signs of a foreclosure crisis at this time!

I encourage readers to watch my latest video addressing the true state of distressed properties across the US, you can link to the video on YouTube here.

If you have any questions or concerns about the housing market, you can always reach out to me with questions, I will get you the honest answers.

The original one-page Weekly Special PDF is still available.