I have at least one conversation like this every week:
“Theresa, you’re a pro at asset mitigation. Where are the foreclosures? Can you put me on a list so I can swoop in and grab a sweet deal?”
Sorry, folks. That list is pretty bare – here’s why.
As of the fourth quarter of 2024, the U.S. housing market remains remarkably stable, with foreclosure rates at historic lows. Recent data shows that only 2.5 percent of mortgaged homes are considered “seriously underwater,” meaning the owners owe at least 25 percent more than their home’s current market value.
On the flip side, nearly half of all homeowners (47.7 percent) with mortgages are sitting on significant equity, classified as “equity-rich.” That means their loan balance is no more than half of their home’s value, putting them in an enviable financial position.
What does this mean for buyers hoping to snag a bank-owned bargain? Simply put, there’s no flood of foreclosures coming. Unlike the 2008-2010 mortgage crisis, where distressed properties flooded the market and tanked home prices, today’s homeowners have enough built-in wealth to avoid foreclosure entirely. Even those facing financial hardship can sell their home, pay off their debts and walk away with cash in hand.
Yes, there are a few foreclosures in my inventory, but many are being sold pre-market to nonprofits like Habitat for Humanity and other neighborhood stabilization programs. These properties are helping create affordable housing opportunities – not fueling an investor’s foreclosure shopping spree.
And the few foreclosures that do hit the market? They aren’t priced under market value. Unlike in the past, banks aren’t desperate to offload distressed properties at a discount. With today’s tight housing supply and sustained buyer demand, even foreclosure homes are selling for close to market rate.
Bottom line? Waiting for a foreclosure deal isn’t a winning strategy in 2025. If you’re looking for a great buy, the key is working with a local expert (like me!) who knows how to spot hidden gems and negotiate the best terms for you – without waiting for a nonexistent foreclosure wave.
Want to talk strategy? Give me a call.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social: Instagram, @theresagrantrealtor | YouTube: @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies.
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