Remember when everyone was obsessed with flipping houses and HGTV made real estate look like a fun hobby? Well, plot twist: the housing market just served us a reality check that’s about as pleasant as finding out your favorite coffee shop raised prices again.
Foreclosure filings just jumped 17% compared to last year, hitting over 101,000 properties in Q3 alone. That’s not exactly the kind of “growth” we like to see in our portfolios, folks.
Here’s what’s actually happening: About 72,317 properties started the foreclosure process last quarter—up 16% from last year. And bank repossessions? They’re up a whopping 33%. It’s like watching a slow-motion train wreck, except the train is made of mortgage payments and the tracks are paved with good intentions.
Why Everyone’s Suddenly Struggling
This isn’t happening in a vacuum. Americans are basically playing financial Jenga right now, and inflation has been pulling out blocks for years. Add a slowing job market to the mix, and you’ve got a recipe for stress that would make a yoga instructor reach for wine.
The real kicker? If you bought a house in the last few years, you’re probably feeling like you got punk’d by the market. Mortgage rates are still hanging out above 6% (currently at 6.34%, because apparently 6% wasn’t painful enough). Meanwhile, the median home price is chilling at $410,800—which is basically a small fortune for what used to be called “starter homes.”
The Numbers Don’t Lie (Unfortunately)
Rob Barber from ATTOM Data (the folks keeping track of this mess) put it diplomatically: “While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain.” Translation: “It’s not apocalyptic yet, but we’re definitely not in Kansas anymore.”
An AP-NORC survey found that nearly three-quarters of adults are stressed about housing costs. Three-quarters! That’s more people than agree on literally anything else in America right now.
What This Means for Your Money
If you’re thinking about buying, this might actually be good news in disguise. More foreclosures typically mean more inventory, which could eventually ease some pressure on prices. But don’t hold your breath—we’re not exactly in fire-sale territory yet.
For current homeowners, this is a reminder that the housing market isn’t a one-way ticket to wealth. It’s more like a roller coaster that occasionally makes you question your life choices.
The bottom line? The housing market is having what we might politely call “a moment.” Whether you’re buying, selling, or just trying to keep up with your mortgage, remember that markets are cyclical—even when they feel personal. And maybe keep that emergency fund a little more emergency-ready than usual.
Stay smart, stay solvent, and remember: even Warren Buffett probably checks his mortgage rate twice.