If you’ve been following real estate news, you might have heard some chatter about foreclosures coming back in a big way. But let’s clear the air: the reality is very different.

According to the latest data from the National Association of Realtors (NAR), only 2% of home sales right now are foreclosures or short sales. That’s not just low—it’s close to a historic low.

This is a far cry from what we saw during the housing crash of 2008, when distressed properties made up a significant share of the market. Back then, the flood of foreclosures was a driving factor in pushing home prices down and creating instability.

Today’s market tells a completely different story.

Why This Matters

• Stronger Homeowner Equity: Thanks to rising home values over the past several years, most homeowners have significant equity in their homes. That means if they hit financial trouble, selling is often a better option than foreclosure.

• Lending Standards Are Tighter: Unlike the lead-up to 2008, today’s mortgage lending is far more regulated. Buyers are better qualified, reducing the risk of mass defaults.

• Market Stability: With foreclosures making up such a tiny portion of sales, the housing market remains steady and competitive, despite shifting mortgage rates and inventory challenges.

What It Means for You

If you’ve been waiting for a “wave of foreclosures” to bring prices down, the data shows that’s unlikely to happen anytime soon. The market is in a very different place today compared to the last crash.

Want to know what’s happening here in our local area? National stats are helpful, but real estate is always local. Let’s connect and talk about what these trends mean for your buying or selling plans.