PLANO, Texas— Foreclosure filings climbed again in October, after sitting at historic lows in recent years, according to new data.
While the numbers are still small, the persistent rise in foreclosures may be a sign of cracks in the housing market, asserted Brian Turner, president and chief economist at Meridian Economics.
There were 36,766 U.S. properties with some type of foreclosure filing in October — such as default notices, scheduled auctions or bank repossessions. That was 3% higher than September and a 19% jump from October 2024, and marked the eighth straight month of annual increases.
Foreclosure starts, which are the initial phase of the process, rose 6% for the month and were 20% higher than the year before. Completed foreclosures, the final phase, jumped 32% year over year, Turner explained.
Looking specifically at completed foreclosures, Texas, California and Florida had the most, suggesting those states will 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 will find buyers quickly,” Turner said.
At the peak of the Great Recession, more than 4% of mortgages were in foreclosure. Today, less than 0.5% are in foreclosure, well below the historic average of between 1% and 1.5%, Turner said.