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January 2025 Foreclosure Activity Overview

The U.S. housing landscape is witnessing increasing foreclosure activity as reported in ATTOM's January 2025 Foreclosure Market Report. This uptick, characterized by a rise in total foreclosure filings across the nation, suggests a potential shift in market trends despite an overall decline observed over the previous year.

Key Highlights

According to the report, January 2025 saw a total of 30,816 properties facing foreclosure proceedings, marking an 8% increase from December 2024, though it remains down 7% compared to January 2024. The report indicates this monthly increase may stem from a normal post-holiday catch-up on filings, as stated by Rob Barber, CEO of ATTOM.

Statewise Increases in Foreclosures

Particular states have seen notable increases in the completion of foreclosures with significant monthly rises noted in:

• - Arizona: Up 73%
• - Virginia: Up 57%
• - South Carolina: Up 55%
• - North Carolina: Up 52%
• - Tennessee: Up 26%

The nationwide trend shows 2,973 properties were completed foreclosures, reflecting just below 1% increase from the previous month but representing a 25% decrease from the same time a year ago. The decline in annual REO (Real Estate Owned) numbers, following 11 of the last 12 months' trends, raises concern about the sustainability of this market dynamic.

Metropolitan Areas with High Foreclosure Rates

Analyzing metropolitan statistical areas (MSAs) reveals that Detroit, Chicago, Riverside, New York, and Philadelphia lead in total REOs. Particularly, Detroit reported 164 REOs, while Chicago followed closely with 148.

When assessing foreclosure rates, Delaware, Nevada, and Indiana topped the list, with Delaware having a staggering rate of one in every 1,839 housing units facing foreclosure filings.

Insights on Foreclosure Starts

While foreclosure completions rise, foreclosure starts have also increased. A total of 20,994 U.S. properties entered the foreclosure process in January 2025, reflecting an 8% increase from the previous month but down 4% from January 2024. The states with the most starts included Texas (2,654), California (2,443), and Florida (1,898).

This duality of trends—monthly increases in foreclosure activity accompanied by annual declines—suggests potential shifts in economic factors influencing the housing market moving forward. ATTOM emphasizes the need to monitor key indicators such as interest rates, inflation, and employment shifts closely to understand their impact on foreclosures throughout 2025.

Conclusion

The data indicates that while January 2025 featured a notable increase in foreclosure activity, the overall picture remains one of relative decline year-on-year. As economists and homeowners alike watch closely, the evolving dynamics of the market will undoubtedly shape the trajectory of future foreclosure rates. Compared to previous years, 2025 may present a pivotal moment in U.S. real estate dynamics as the economic landscape continues to change.