US foreclosed home listings climbed to their highest level in six years as properties continued to hit the market following the end of pandemic-era housing protection programs, News Corp's (NWS, NWSA) Realtor.com said Tuesday.
Foreclosure listings made up 1.3% of all for-sale homes in April, up from a recent low and approaching the 1.7% share in April 2020, according to a report by the online real estate portal.
"Foreclosures are normalizing, not accelerating into a crisis," Realtor.com Senior Economist Joel Berner said. "This rise is happening because pandemic-era forbearance and moratorium programs fully wound down in 2024, and the homeowners feeling it most are the ones who bought at peak prices and are now squeezed by rising insurance, taxes, and adjustable-rate payments."
Foreclosure is the process by which a lender terminates a homeowner's right to their property after the borrower fails to meet their obligations. The lender takes possession of the property and sells it to recover the outstanding loan balance.
The median foreclosed home sold for 27% below its estimated value in April.
"In a market where affordability is still the dominant challenge, foreclosures offer a path to a meaningful discount," Berner added. "The process takes patience, but for buyers who are prepared and can navigate the challenges of buying this type of home, the savings are real."
Foreclosed properties drew 27% more page views in the first half of the year than standard listings, while they spent an average of 11 days longer on the market, Realtor.com said.
US home asking prices in June experienced their steepest annual decline since 2017 as sellers increasingly cut prices to attract buyers, Realtor.com data showed last week.
Price: $30.65, Change: $+0.63, Percent Change: +2.08%



