Foreclosures Rise to Six-Year High, but Local Experts Say Housing Market Remains Stable

Several new housing reports show home foreclosures have reached their highest level in six years, but local real estate experts say that does not necessarily signal a major drop in home prices.

According to the National Association of Realtors, distressed properties — including foreclosures and short sales — accounted for just 2% of home sales nationwide in recent months, suggesting the market remains relatively stable despite rising foreclosure activity.

In Riverside County, homeowners have also seen significant gains in equity. The organization reports the average single-family homeowner in the county has gained roughly $250,000 in home equity since 2020.

Local real estate professionals say those strong gains are helping many homeowners avoid foreclosure by giving them options to sell or refinance before falling too far behind financially.

“That’s a really unusual pace because what we typically know is the typical home would gain three to five percent in housing equity over the course of a year,” one local expert said.

Experts also emphasized that today’s housing conditions are far different from the 2008 housing crash, citing stronger homeowner equity and tighter lending standards.

Here in the Coachella Valley, continued home value appreciation is helping many single-family homeowners maintain strong equity positions, which experts say is reducing the likelihood of widespread foreclosures even as national numbers trend upward.