With headlines buzzing about rising foreclosure activity, many are left wondering if we're heading for another housing crash. But let’s set the record straight: today’s foreclosure numbers are not a red flag—they’re a sign of a market finding its balance after years of disruption.

In this blog, we’ll break down the data, clear up common misconceptions, and explain why today’s housing market is fundamentally different from what we saw in 2008.

The Truth Behind the Headlines

It’s true: foreclosure filings have increased compared to last year. But that doesn’t automatically mean the market is in trouble.

Here's what’s really happening:

• Foreclosure activity is rising from historic lows, not from normal levels.

• During the pandemic, foreclosure moratoriums and mortgage forbearance programs kept filings artificially low.

• Now, as those protections expire, we’re seeing a backlog work its way through the system—not a wave of new defaults.

In other words, this is more of a market correction than a warning sign.

Lending Standards Are Still Strong

Unlike the lead-up to the 2008 crisis, today’s borrowers are far more qualified.

Here’s why:

• Stricter mortgage underwriting standards have been in place for over a decade.

• The average credit score of today’s buyers is significantly higher than during the housing boom.

• Most homeowners now have equity in their homes, reducing the risk of default.

Homeowners who fall behind today are more likely to sell their home with a profit rather than lose it in foreclosure.

Home Values Remain Strong

Another key difference? Home prices have stabilized, not collapsed. While the market has cooled slightly from its pandemic peak, demand remains healthy—especially in suburban and sunbelt areas.

• According to CoreLogic and Realtor.com, home price growth has slowed, but values are still well above pre-pandemic levels.

• This means most homeowners are not underwater on their mortgages, which was a major issue in the last housing crash.

Rising foreclosure numbers are not the result of plunging home values—they’re part of a normalization process.

What This Means for Buyers and Sellers

If you're buying: Don't let foreclosure headlines scare you away. Opportunities still exist, and with less competition than in 2021-2022, now might be a smart time to enter the market.

If you're selling: Remember that inventory remains tight in many regions, and serious buyers are still active. Well-priced homes are moving.

If you're a homeowner behind on payments: Talk to your lender. Options like loan modification, short sales, or equity sales may help you avoid foreclosure.

Foreclosures are a normal part of the housing cycle. After two years of historically low activity, we’re now seeing a return to pre-pandemic norms—not a crisis.

Today’s foreclosure numbers are not a cause for panic. They’re a reminder of how resilient the current market really is—and how much we’ve learned since 2008.

Matt Witte strives to be the best realtor in Andover MA.

Any questions about real estate, reach out to Matt Witte Andover Realtor MA