by Calculated Risk on 6/04/2025 12:58:00 PM
Today, in the Calculated Risk Real Estate Newsletter: Q1 Update: Delinquencies, Foreclosures and REO
A brief excerpt:
This entire housing cycle I’ve argued that we would NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.
…This graph shows the nominal dollar value of Residential REO for FDIC insured institutions based on the Q1 FDIC Quarterly Banking Profile released last week. Note: The FDIC reports the dollar value and not the total number of REOs.
The dollar value of 1-4 family residential Real Estate Owned (REOs, foreclosure houses) was up 5% YOY from $742 million in Q1 2024 to $784 million in Q1 2025. This is historically extremely low.
There is much more in the article.
