Do you ever tire of hearing about all those gloomy predictions for the future? Let’s review: Will Foreclosure Crash the Housing Market in Metro Detroit this Winter 2025? 🥴
Will Foreclosures Crash the Housing Market in Metro Detroit This Winter?
With a slight increase in unemployment, people are concerned that tighter budgets could lead to more missed mortgage payments, sparking a surge in foreclosures.
However, before we jump to conclusions about whether foreclosures will crash the housing market, let’s explore what’s actually happening. The latest data shows that while unemployment is up, inflation is down, and a foreclosure wave is not on the horizon.
How Today’s Market is Different from the Foreclosures of 2008 Housing Market
It helps to compare today’s situation with what happened back in 2008. Research from ATTOM, a property data company, shows fewer homeowners are now in foreclosure than during the 2008 housing crisis. Back then, foreclosures surged and overwhelmed the market. The numbers are much lower today and have even dipped slightly in recent reports. This indicates we’re not in the same trouble we saw in 2008.
You might notice that foreclosure filings have increased slightly since 2020 and 2021. However, this is due to the temporary foreclosure ban during those years, which helped homeowners during tough financial times. That ban kept foreclosure numbers unusually low. When you step back and look at the whole picture, you’ll see that foreclosure filings are much lower overall than in the past.
The key reason is that homeowners today have much more equity in their homes compared to 2008. As Bankrate explains:
“After the housing crash, millions of foreclosures hit the market, pushing prices down. That’s not happening now. Most homeowners have a strong equity cushion in their homes.”
This equity acts as a safety net, allowing many homeowners to avoid foreclosure despite financial struggles. If someone is having trouble making their mortgage payments, they can often sell their home to avoid foreclosure, unlike during the 2008 crash, when many owed more on their homes than they were worth.
Foreclosures in Metro Detroit
Learn how to use the live feed from the Multiple Listing Service (MLS)
As you can see below, there are only a few bank-owned foreclosures on the market in Macomb and Oakland County, so the threat of foreclosures crashing the housing market is minimal. This is a live feed with no lag time for data dumps. Create an account and save your search to track and purchase a distressed home. You will be alerted when a new property is listed in the MLS.
Let’s Decode the Housing Market Together! Let’s Connect ⤵️
Wow 😮, there’s a lot to consider! Whether looking to buy a new home or considering selling, keeping up with the latest housing market trends is essential. Let’s simplify the process together. Schedule a Zoom call with me, and we’ll review the data. I’ll share my screen so you can see the market insights clearly and feel confident about your next steps.
More Help Is 1️⃣ Click Away⤵️
Bottom Line
While we are still experiencing a wobble in expenses like gas and groceries, the housing market in Metro Detroit isn’t headed for a foreclosure crisis. The data shows foreclosures are far below the levels that led to the 2008 crash. Homeowners are generally in a much better place financially, thanks to the equity they’ve built in their homes, starting with the pandemic. So, while expenses may wobble, we will unlikely see a wave of foreclosures impacting the market this winter.
