Don't Believe the Foreclosure Hype

Don’t Believe the Foreclosure Hype.  The Austin area foreclosure stats for 2023 are out and so is the hype that accompanies it.  While the number of foreclosures is low, a lot more clicks can be had by proclaiming the foreclosures are up 37%.  So let’s look at the real story.  There were 1,438 foreclosures in the Austin area last year.  But that’s down 13% from pre-pandemic 2019.  And it’s down 85% from the recession era 2010.  Banks were rarely foreclosing in 2020 and 2021, instead preferring to work with homeowners on forbearance agreements.  Foreclosures resumed more normally in 2022.  Today’s foreclosures are not related to the pandemic so we are getting back to normal.  While the increase was 37% last year, we’re still well below historical norms.  For those waiting for the housing market to crater, these foreclosure stats are not the indicator it seems.

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