October Foreclosure Data Signals Housing Market Pressure Points
Originally published on November 18, 2025
The housing market is showing new signs of stress. Foreclosure filings climbed for the eighth consecutive month in October, according to data from Attom, a property analytics firm. While overall numbers remain well below historical averages, the persistent upward trend suggests some homeowners are struggling under the weight of elevated housing costs and economic uncertainty.
What The Numbers Show
In October 2024, 36,766 U.S. properties entered some phase of foreclosure, including default notices, scheduled auctions or bank repossessions. That figure represents a 3% increase from September and a 19% jump compared to October 2023. Foreclosure starts rose 6% for the month and were 20% higher than the year before. Completed foreclosures jumped 32% year over year.
Rick Sharga, CEO of CJ Patrick Co., a real estate market intelligence firm, notes that less than 0.5% of mortgages are currently in foreclosure, far below the historic average of between 1% and 1.5%. At the peak of the Great Recession, more than 4% of mortgages were in foreclosure. In addition, 4% of mortgages are delinquent today compared to almost 12% at the peak of the financial crisis.
Where Foreclosures Are Concentrating
Florida, South Carolina and Illinois led the nation in state foreclosure filings. On a metropolitan area level, Florida’s Tampa, Jacksonville and Orlando had the most filings, with Riverside, California and Cleveland rounding out the top five.
Looking specifically at completed foreclosures, Texas, California and Florida had the most, suggesting those states may see more inventory coming on the market at distressed prices. There is still very strong demand for homes, especially in lower price ranges, so it is likely those foreclosed properties may find buyers quickly.
Financial Pressures Behind The Numbers
Attom CEO Rob Barber describes the current trend as reflecting a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to handle higher housing and borrowing costs. Mortgage rates, which were expected to fall more sharply after the Federal Reserve began cutting rates, are still within a percentage point of their recent highs. Some recent buyers who thought they might be able to refinance to lower rates by now may be feeling pressure, especially with stubborn inflation still.
Sharga points out that Federal Housing Administration delinquencies are over 11% and account for 52% of all seriously delinquent loans. We’re likely to see more FHA loans in foreclosure in 2026, he notes.
He also observes that states where home prices have been falling while insurance premiums have been soaring, Florida and Texas in particular, are seeing an uptick in defaults.
Broader Market Context
While home prices nationally are easing, they remain stubbornly high. Consumer debt is at an all-time high, delinquencies are rising in other types of consumer credit and the job market appears to be weakening. All of these could contribute to cracks in the housing market.
Sharga notes that none of these issues have impacted mortgage performance yet, but it would be unrealistic to assume that these trends, along with slow home sales and declining home price appreciation, won’t lead to at least a slight increase in delinquencies and defaults in the months ahead.
What This Means For Florida Real Estate Leaders
For Florida property owners and investors, the state’s concentration of foreclosure activity warrants attention. The combination of falling home prices in some areas and rising insurance costs is creating financial stress for some homeowners. Real estate professionals operating in Tampa, Jacksonville and Orlando should monitor these trends as they may affect local inventory levels and pricing dynamics in the coming months.
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