Foreclosure Activity Surged In Q1 2025
A flood of foreclosure starts and repossessions upended many Americans’ lives in Q1 as increasing economic pressures strains homeowners.
A total of 93,953 properties had foreclosure filings (which include default notices, scheduled auctions, and bank repossessions) in Q1 2025, up 11% from the previous quarter, according to ATTOM.
That figure is actually down 2% YOY, but zooming in closer reveals worsening conditions. In March alone, filings increased 11% from the month prior and 9% on the year.
“Following three consecutive quarters of decline, foreclosure activity ticked up in the first quarter of 2025, with notable growth in both starts and completions,” said Rob Barber, CEO at ATTOM.
“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges. However, strong home equity positions in many markets continue to help buffer against a more significant spike in distress.”
Some 68,794 properties started the foreclosure process last quarter, up 14% from the previous quarter and up 2% YOY.
Kansas, Delaware, Oklahoma, Utah, and Wyoming had the greatest annual increases in foreclosure starts, while Delaware, Illinois, and Nevada saw the highest foreclosure rates.
At the city level, major metros like Chicago, NYC, Houston, Miami, and Philadelphia saw the biggest jumps.
Bank repossessions rose 8% from Q4 2024, with lenders taking 9,691 properties. This is a decline of 4% from the year prior, however.
Inflationary pressures are putting more strain on households. Recent data showed both consumer prices and producer prices cooling more than expected in March, just before President Trump’s tariff policies sent shockwaves through the economy.
Consumer confidence plummeted this week as Americans watched the stock market stumble. Around 60% of Americans have stock market investments. Some plan to retire with the funds; others said they intended to use stocks to put a down payment on a house.
“Big drops in the stock market not only cut into funds earmarked for down payments and other housing costs, they shake consumer confidence and make people feel poorer in general. And this comes at a time when people are bracing for the price they pay for all kinds of things to rise as tariffs go into effect,” Chen Zhao, Redfin’s economic research lead, commented.