Analyst Rebuts 21% Foreclosure Jump, Says Listings at 1.56 Million Signal No 2008-Style Crisis
Updated
Updated · HousingWire · Jul 24
Analyst Rebuts 21% Foreclosure Jump, Says Listings at 1.56 Million Signal No 2008-Style Crisis
1 articles · Updated · HousingWire · Jul 24
Summary
A 21% year-over-year rise in foreclosure data does not point to a housing crash, the analyst argues, saying foreclosure activity is merely returning toward normal rather than signaling systemic distress.
New listings remain far below crisis levels: 74,250 last week in 2026 versus 286,855 in 2009 and nearly 380,000-392,000 in 2010-11, while active listings stand at 1.56 million versus 4 million in 2007.
Homeowner balance sheets also look far stronger than during the financial crisis, with 40% of homes mortgage-free and total loan-to-value at 45.1% versus about 85% in 2008.
That cushion is reinforced by tighter post-crisis lending rules, widespread 30-year fixed mortgages under 6%, and the absence of the payment shocks and toxic-loan buildup that drove the 2005-08 foreclosure wave.
The broader point is that foreclosure is a slow process and, without a major credit boom and job-loss recession, today’s market lacks the ingredients for the only post-WWII national home-price crash.