Foreclosure headlines are grabbing attention once again—but they often paint a misleading picture meant to spark concern. The good news? When you take a step back and examine the full data, it becomes clear that the housing market is much healthier than those headlines suggest. Before jumping to conclusions, it’s essential to view the bigger picture.

Yes, foreclosure starts have increased by 7% in the first six months of the year. But that number only tells part of the story. When you take a broader look at the current housing landscape, it’s clear we’re still far from any kind of crisis. Let’s look at what the numbers really show.

Filings Are Still Far Below Crash Levels

Even with a modest rise, overall foreclosure filings remain extremely low. In the first half of 2025, just 0.13% of homes had a foreclosure filing—that’s less than one-quarter of one percent. In practical terms, that’s roughly 1 in every 758 homes nationwide, according to data from ATTOM.

To put this in perspective, during the housing crash in 2010, Mortgage News Daily reports that foreclosure filings affected 1 in every 45 homes. That’s a dramatically different scenario. So, while today’s numbers are slightly higher than last year, they are still nowhere near what we saw during the crash.

As with anything in real estate, local markets can vary. Here’s a helpful map showing how foreclosure rates differ across the country and why most areas are experiencing very manageable levels. It’s a reminder that national trends don’t always reflect what’s happening in your own backyard.

Today’s Market Is Built on Strong Fundamentals

What many people recall from the housing crash is how it was driven by risky lending practices. Many homeowners ended up with mortgages they couldn’t afford and had little to no equity. When financial hardship struck, they couldn’t sell or refinance—and many had no choice but to walk away.

Today’s market is fundamentally different. Lending standards are much stricter, and most homeowners have built up substantial equity. This gives them options. If they do face financial difficulty, they’re far more likely to sell their home with a profit instead of going through foreclosure.

Rick Sharga, Founder of CJ Patrick Company, puts it well:

“. . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”

This means that even in challenging times, homeowners are in a stronger financial position. That’s a key reason why foreclosure activity remains so low and why the housing market is not in danger of collapse.

Bottom Line

While headlines may stir up fear, the data tells a more optimistic story. Foreclosure activity in 2025 remains well below historical levels and is not a sign of an impending housing crisis. The combination of strong equity positions, responsible lending, and a resilient market means homeowners today are better protected than ever.

If you’re monitoring the market or curious about how these trends affect your home’s value, it’s always wise to speak with a knowledgeable local expert. For trustworthy insights and personalized guidance, reach out to Mike Panza and the team at Panza Home Group. They’re here to help you make confident, informed real estate decisions.

Learn more and contact the team directly here: https://panzarealestate.com/team/mike-panza