Why Rising Foreclosure Headlines Aren’t a Red Flag for Today’s Housing Market

If you’ve seen headlines saying foreclosure activity has been climbing for 10 straight months, it’s easy to assume that Massachusetts’ housing market might be in trouble. But the full picture tells a different story.

Here’s what’s really happening:

• Foreclosure numbers are in line with normal trends
  
  
• Strong home equity keeps most homeowners financially secure
  
  
• No signs of a wave of distressed sales that could crash the market
  
  

Foreclosure Filings Are Up – But Don’t Panic

ATTOM data shows foreclosure filings are up 32% year-over-year, which might sound alarming. But context is key. This isn’t the same as the 2008 housing crisis. Back then, risky lending practices and a housing glut caused home prices to tumble, leading to mass foreclosures. Today, lending standards are stronger, borrowers are more qualified, and most homeowners have significant equity in their homes.

In Massachusetts, many homeowners saw their property values rise steadily over the last five years. That means most residents have a financial cushion, giving them options like selling their home if they face hardship – often even walking away with money, unlike in 2008.

Rob Barber, CEO of ATTOM, sums it up well:

“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels… today’s uptick is being driven more by market recalibration than widespread homeowner distress, with strong equity positions and more disciplined lending continuing to limit risk.”

The word “normalization” is key here. The increase in foreclosures isn’t a signal of widespread distress – it’s a return to typical market conditions.

Why This Isn’t a Repeat of 2008

• Lending standards are stronger
  
  
• Borrowers are more qualified
  
  
• Homeowners have far more equity
  
  

Massachusetts homeowners are largely protected from the worst-case scenarios seen in the last housing crash. The local market remains resilient, with demand staying healthy and properties retaining strong value.

Bottom Line for Massachusetts Homeowners

Foreclosure activity may be rising, but it’s still within a normal range and far from crisis levels. Headlines may try to scare, but the reality is far less dramatic.

If you’re concerned about what news reports mean for your home or the Massachusetts market, having a trusted local real estate expert to provide context is invaluable. Don’t let fear dictate your decisions – get the facts before taking action.