From home sales to foreclosures: The numbers brokers can’t ignore

In October, existing home sales rose 1.7% compared to the same time last year. Recent improvements in mortgage rates helped drive this uptick, but the increase may prove temporary. Because the numbers reflect home closings, they primarily capture contracts signed in August and September. Looking ahead, the recent government shutdown may influence closing counts in the coming months.

While existing home sales have improved, the inventory of homes is shrinking. As a result, home prices continue to rise. In October, the median home price reached $415,200, a 2.1% increase year over year and the 28th consecutive month of gains. And although lower mortgage rates have created more opportunities for buyers, affordability remains a significant barrier for many hoping to take the leap into homeownership.

After seeing historic lows over the past few years, foreclosure filings experienced another jump in October. There were 36,766 U.S. properties with a foreclosure filing in October, which is 3% higher than September and a 19% jump when compared to October 2024.

The persistent rise in foreclosures could show a sign of cracks in the housing market, but these overall numbers are still pretty small. ATTOM CEO Rob Barber said that even with the increases, the current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust. Activity remains well below historic highs, so while this trend is something to monitor, no alarm needs to be raised.