If you’ve been keeping up with the news lately, you’ve probably come across some articles talking about the number of foreclosures in today’s housing market is going up. And that may leave you feeling a bit worried about what’s ahead, especially if you owned a home during the housing crash in 2008.
The reality is, while increasing, the data shows a foreclosure crisis is not where the market is headed. Here’s the latest information stacked against the historical data to put your mind at ease. The headlines make the increase sound dramatic – But it’s really not
The increase the media is calling attention to is a little misleading. That’s because it’s comparing the most recent numbers to a time when foreclosures were at their historic lows. And that lopsided comparison is making it sound like a much bigger deal than it actually is.
Back in 2020 and 2021, there was a moratorium and forbearance program that helped millions of homeowners avoid foreclosure during challenging times. That’s why numbers a few years ago were so low.
Now that the moratorium has come to an end, foreclosures are resuming and that means numbers are rising. But it’s an expected increase and not a cause for alarm. Just because foreclosure filings are up doesn’t mean the housing market is in trouble.
To prove that to you, let’s expand the comparison out a bit more. Specifically, we’ll go all the way back to the housing crash in 2008 – since that’s what people worry may happen again. The graph below uses research from ATTOM, a property data provider, to show foreclosure activity has been consistently lower since the crash in 2008: