Home Foreclosures on the Rise

Housing Market Update

Not a crash—but definitely an increase in foreclosures & short sales.

2025 is seeing more distressed listings hit the market—ATTOM data reveals that foreclosure starts rose by 14% in Q1 and 7% across the first half of the year, compared to the same periods in 2024 . While this signals growing financial strain, it’s nothing like the 2008 meltdown—today’s overall foreclosure rates remain very low (about 0.13% of homes nationwide, or 1 in every 758) .

Why the rise? From tighter budgets to surging insurance costs and even climate‑related risks (like flooding without sufficient coverage), homeowners are feeling pressure . That said, strong home equity and prudent lending have kept the market stable—this isn’t a sign of collapse, just a cooling off from the frenzied pandemic market .

Why Sacramento stands out right now:

California remains one of the top states for foreclosure starts—14,751 in the first half of 2025 —which could mean more inventory and potential bargains.

Sacramento’s market fundamentals are solid: healthy demand, steady growth, and strong equity—not the kind of riskier, overheated markets others face