Homebuyers looking for a significant discount on properties should pay closer attention to foreclosure listings, according to a report from Realtor.com.
Although foreclosure listings made up 1.3% of all homes for sale in April, the highest level in six years, these listings generated 26.5% more page views on Realtor.com during the first half of the year. The median foreclosed home sold for 27.2% below its estimated value.
Foreclosed homes also tend to sit on the market an average of 11 days longer. Realtor.com noted the slower pace reflects the product: REO listings had 30.4% fewer photos and descriptions 33% shorter than those of standard listings.
“Foreclosures are normalizing, not accelerating into a crisis,” said Joel Berner, senior economist at Realtor.com. “This rise is happening because pandemic-era forbearance and moratorium programs fully wound down in 2024, and the homeowners feeling it most are the ones who bought at peak prices and are now squeezed by rising insurance, taxes, and adjustable-rate payments. Even with that pressure, we’re looking at a return to 2019 norms, not anything close to the Great Financial Crisis.”
Berner added, “In a market where affordability is still the dominant challenge, foreclosures offer a path to a meaningful discount. The process takes patience, but for buyers who are prepared and can navigate the challenges of buying this type of home, the savings are real.”
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