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.
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.
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.
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.
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.
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!
Seattle now holds the second‑highest office vacancy rate in the nation at 26.6%, with some downtown areas soaring past 35% and Pioneer Square reaching 50%. Mayor‑elect Katie Wilson steps into office with bold proposals—including a vacancy tax and office‑to‑housing conversions—amid tech pullbacks, shifting work habits, and investor uncertainty. Despite alarming numbers, signs of resilience remain, offering opportunities for savvy real estate professionals watching this market transform in real time.
Florida lawmakers are once again targeting the fast‑growing litigation‑financing industry with House Bill 1157, a proposal that would restrict how outside investors participate in lawsuits. The bill would limit funder influence, cap their share of settlements, and require new disclosures—especially for foreign‑backed financing. As similar measures emerge nationwide, the outcome could significantly impact professionals across law, insurance, finance, and real estate who depend on predictable risk and regulatory environments.
Starting April 1, Philadelphia homeowners and renters with federal flood insurance will see a 15% reduction in their premiums thanks to the city joining FEMA’s Community Rating System. The discount reflects Philadelphia’s growing investment in flood‑risk mitigation and is expected to save residents and businesses more than $424,000 annually. Beyond easing household expenses, the change also reshapes how real estate and insurance professionals evaluate flood‑zone properties, opening the door to improved affordability and stronger buyer confidence.
Newrez is doubling down on artificial intelligence with a strategic investment in Homevision, an advanced AI underwriting platform designed to automate collateral, income, assets, credit, and full loan decisioning. After seeing Homevision’s MIRA system boost collateral underwriting efficiency, Newrez plans to expand the technology in 2026—signaling a breakthrough year for real-time automated underwriting across the mortgage industry.
A new United Van Lines migration report reveals that Americans are trading big-city ambition for affordability, shorter commutes, and better quality of life—reshaping where and how commercial real estate will grow. Southern and smaller markets continue to attract new residents, but pandemic‑era assumptions of endless demand are fading as rent growth cools and new inventory floods the market. For investors and real estate professionals, the opportunity now lies in affordable housing, modest office parks, value‑focused retail, and support‑industrial spaces like self‑storage.
The 2026 housing market is finally shifting into balance, with economists forecasting rising home sales, improved affordability, and a more diverse buyer pool. Inventory is up, mortgage rates are easing, and demographic changes—from returning first-time buyers to dominant baby boomers—are reshaping demand. New construction is stabilizing, price growth is moderating, and millions of buyers could re-enter the market as rates fall toward 6 percent. For real estate professionals, this rebalanced environment offers fresh opportunities for growth, strategy, and education.
