{"id":63644,"date":"2026-07-25T03:00:17","date_gmt":"2026-07-25T01:00:17","guid":{"rendered":"https:\/\/housesmarketplace.com\/dont-fall-for-a-fake-foreclosure-crisis\/"},"modified":"2026-07-25T03:00:17","modified_gmt":"2026-07-25T01:00:17","slug":"dont-fall-for-a-fake-foreclosure-crisis","status":"publish","type":"post","link":"https:\/\/housesmarketplace.com\/ru\/dont-fall-for-a-fake-foreclosure-crisis\/","title":{"rendered":"Don\u2019t fall for a fake foreclosure crisis"},"content":{"rendered":"
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Recently, the foreclosure data showed a 21% year-over-year <\/a>gain, and the floodgates of doom porn were flung wide open, with people marketing an impending home-price crash because they say so many Americans are struggling and it\u2019s about to get worse. The hucksters of America are back at it again, and it went mainstream, too.<\/p>\n

Andrew Yang, the former presidential candidate for the Democratic Party, posted today on X: \u201cThe pain is spreading to homeowners.\u00a0 Highest foreclosure rate in 7 years and it gets worse from here.\u201d \u00a0<\/p>\n

He reposted an article from a traditional doom porn specialist on X, something we seem to have a lot of. Over the last few days, people have been sending me videos of an impending foreclosure crisis that would be worse than 2008 because apparently we also have the largest number of sellers versus buyers ever in the history of the U.S. That is also a lie, by the way. \u00a0In 2007, we had 4 million active listings; today we are at 1.56 million. Normal levels are between 2 million and 2.5 million.<\/p>\n

This article will show you how to combat this narrative.<\/p>\n

There\u2019s no foreclosure crisis, folks<\/h2>\n

The best reference for this topic is the New York Federal Reserve<\/strong> and the chart below from the quarterly Household Debt and Credit Report<\/a>. This is the chart I show in live events where I speak about the housing bubble crisis and how foreclosures were rising in 2005, 2006, 2007, and 2008 \u2014 then the job loss recession happened. Just look at the bankruptcy data in the early part of the century. The highest credit risk cycle in over 100 years took four years to build up; it needed a massive credit boom cycle to build up before it.<\/p>\n

None of that is happening today. If you believe we have a foreclosure crisis today, then we have been in a foreclosure crisis since WWII. Traditionally, there are always 1%-4% of mortgage loans in some stage of delinquency. Foreclosures happen every year \u2014 we are just getting back to normal levels.<\/p>\n

Just remember: stock versus flow. We have over 162 million people working, and we passed two important laws that affect foreclosures: the Bankruptcy Reform Law in 2005 and Dodd-Frank, which created the Qualified Mortgage rule, in 2014. Because of these laws, the credit profiles of homeowners look great in scale terms.<\/p>\n

Foreclosure to supply takes time<\/h2>\n

A really important data line in this discussion is our weekly \u043d\u043e\u0432\u044b\u0435 \u043e\u0431\u044a\u044f\u0432\u043b\u0435\u043d\u0438\u044f<\/a> data, which is why we include it in the \u0422\u0440\u0435\u043a\u0435\u0440 \u0440\u044b\u043d\u043a\u0430 \u0436\u0438\u043b\u044c\u044f<\/a> every week. If the housing market is having a credit bust, then our new listings would take off. However, the last five years have been the lowest new listings data in history; it didn\u2019t matter if rates were at 3% or 8%. Even in 2026, new listings data has never gotten back to normal, which would be 80,000-100,000 during the seasonal peak months.<\/p>\n

During the housing bubble credit crisis, new listings were running from 250,000-400,000 per week<\/em> for years. Years, people! Compare that to today:<\/p>\n

\u041d\u043e\u0432\u044b\u0435 \u043e\u0431\u044a\u044f\u0432\u043b\u0435\u043d\u0438\u044f:<\/p>\n