Home foreclosures in the U.S. surged in October – a worrying sign for an already strained housing market facing high borrowing costs and slowing job growth. Real estate data firm ATTOM reported that 36,766 properties were in some stage of foreclosure last month – a 3% increase from September and a 19% jump from a year ago.
Foreclosures rising nationwide
Foreclosure starts, the first step in the process, rose 6% month-to-month and 20% year-over-year, totaling 25,129 new filings.
Meanwhile, completed foreclosures or repossessions jumped 32% from 2024, marking the eighth straight month of annual increases.
ATTOM CEO Rob Barber said the trend reflects a slow but steady normalization after years of pandemic-era protections.
“The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs,” Barber said in a release.
Where it’s hitting hardest
The states with the highest foreclosure rates in October were Florida, South Carolina, Illinois, Delaware and Nevada.
Breaking that down by city, the hardest-hit metro areas included Riverside, California; Tampa, Florida; Jacksonville, Florida; Orlando, Florida and Cleveland, Ohio.
Florida also led the nation in foreclosure starts with 4,136 filings, followed by Texas (3,080) and California (2,685).
When it comes to completed foreclosures, roughly 3,872 homes were repossessed nationwide, with Texas, California and Florida topping that list.
CNBC reports that, despite the increase, demand for homes in many of those markets remains strong, meaning foreclosed properties likely won’t sit on the market long. Rising insurance premiums in some regions, however, may be fueling more defaults.
Debt, jobs and market pressure
Economists say growing consumer debt and a softening labor market are key contributors to the uptick in foreclosures.
Rick Sharga, CEO of CJ Patrick Company, told CNBC, “None of these issues have impacted mortgage performance yet, but it would be unrealistic to assume that these trends, along with slow home sales and declining home price appreciation, won’t lead to at least a slight increase in delinquencies and defaults in the months ahead.”
Still, he added, foreclosure and delinquency rates remain well below the levels seen during the 2007-2009 recession.
Some cities buck the trend
Not every housing market is flashing warning signs.
Among metro areas with populations over one million, Milwaukee, Indianapolis, Louisville, Washington, D.C., and Detroit all recorded declines in foreclosure activity last month.
ATTOM’s analysis included data from more than 3,000 counties to compile the report.
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