Auction.com has unveiled its 2025 Distressed Market Outlook, projecting a potential 8% decrease in foreclosure auction volume for the upcoming year. This baseline scenario is complemented by two alternative forecasts which could see an increase in auction volumes based on differing economic conditions.


Jason Allnutt, CEO at Auction.com, highlighted the importance of their platform, stating, “The Auction.com marketplace provides rich, real-time data on supply, demand, and pricing for distressed properties sold at auction nationwide.” This data is crucial for forecasting trends in the retail housing market.


The report indicates that foreclosure auction volumes are set to hit a three-year low in 2024. This decline is attributed to increased market headwinds, such as rising retail inventory and persistently high mortgage rates, which have impacted local community developers.


Auction buyers have shown a decreased willingness to pay prices relative to the after-repair value of properties towards the end of 2024. However, signs of recovery were evident in November and December, as price demands began to climb.


Evolution of default loan

Foreclosure Auction Supply

Completed foreclosure auction volume in Q4 of 2024 decreased by 3% from Q3 and was down 11% from the previous year, reaching its lowest since Q3 of 2021. Auction.com data, which represents nearly half of all completed foreclosure auctions nationwide, shows a 42% decrease from Q1 2020 levels.


Auction supply graph

REO Auction Supply

Bank-owned (REO) auction volume in Q4 of 2024 saw a 3% increase from Q3 and remained stable compared to the previous year. This volume is at 39% of Q1 2020 levels, marking a slight increase from earlier quarters.


Reo auction supply graph

Distressed Market Waterfall

The volume of distressed loans upstream from completed foreclosure auctions shifted in Q3 of 2024, with seriously delinquent mortgages rising by 10% from the previous quarter. Despite this, foreclosure inventory remains significantly below pre-pandemic levels.


Distressed market graph

Ali Haralson, President of Auction.com, noted, “While the number of distressed homeowners has returned to pre-pandemic levels, many are avoiding foreclosure thanks to ample home equity that allows them to sell through a pre-foreclosure sale.”


2025 Foreclosure Outlook

Daren Blomquist, VP of Market Economics at Auction.com, stated, “Emerging risks in the economy and housing market are pushing delinquencies higher, but those higher delinquencies will not likely translate into higher foreclosure auction volume until at least early 2026.”


The report uses a regression-based model with home price appreciation and unemployment rates as primary inputs. It predicts a baseline 8% decrease in foreclosure auction volume for 2025. However, changes in these economic indicators could lead to varying outcomes.


For further insights, the full 2025 Distressed Market Outlook is available for review.


This article is based on information from themortgagepoint.com, published one month ago.

More Articles

Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!

Telehealth, Patient Reviews, and Retailization – 2024 Healthcare Digital Marketing Trends

The healthcare industry is undergoing a significant transformation, marked by rapid growth and innovation. By 2028, the global healthcare market is expected to reach a staggering $665.37 billion, while national healthcare spending is projected to soar to $5.7 trillion by 2026.

By |November 18, 2024|Categories: Article, Digital Marketing Trends, Healthcare|Tags: , |0 Comments

Climate Change and the Insurance Industry: A Growing Crisis

"Insurance is where many people are feeling the economic impacts of climate change first."

Adapting Glaucoma Training and Treatment: Insights from the Orbis Flying Eye Hospital

In underserved regions, innovative approaches are empowering local medical teams by enhancing surgical skills, implementing early detection protocols, and integrating telemedicine advancements to prevent blindness.

By |November 17, 2024|Categories: Article, Healthcare, Medical Training|Tags: , |0 Comments

ETH Zurich’s Impact Printing: A Breakthrough in Sustainable Construction

The innovative team at ETH Zurich is making waves in the construction world with their new method, Impact Printing. This groundbreaking technique utilizes Earth-based materials, such as sand, silt, clay, and gravel, to construct environmentally friendly structures.

Healthcare Leaders Navigate AI Revolution

Healthcare needs to embrace artificial intelligence,” stated Dr. Gianrico Farrugia, President and CEO of Mayo Clinic, who also serves on a National Academy of Medicine panel working on a code of conduct for AI use in healthcare.

By |November 17, 2024|Categories: Article, Healthcare, Technology|Tags: |0 Comments

Central Bank Digital Currencies: Bridging Innovation and Stability

CBDCs represent the next step, aiming to modernize financial services to be more resilient and inclusive. As digital currencies become more integrated into the global financial system, they may offer a more inclusive and efficient financial framework but will require careful implementation to balance innovation with stability.

By |November 16, 2024|Categories: Article, Finance, Technology|Tags: , |0 Comments