Foreclosures are rising. Delinquencies are climbing. The housing market is supposedly about to crash.
That is the story being pushed through headlines, social media posts, lead-generation advertisements, and products promising to help real estate agents cash in on the next massive REO wave.
But there is one question most of those headlines conveniently avoid:
Rising compared to what?
When today’s housing market is compared to the artificially low foreclosure levels of the COVID years, almost any increase looks alarming. Compare the 2026 market to a more normal housing year like 2019, however, and the story changes significantly.
For real estate agents, this is more than an economic debate. Fear-based headlines influence buyers, sellers, prospecting decisions, listing conversations, and entire careers.
Why This Matters
Buyers who believe a crash is coming may delay purchasing a home or submit unrealistic offers because they expect prices to collapse.
Sellers may become anxious about their equity and make decisions based on national headlines instead of their local housing data.
Real estate agents can fall into the same trap. They may stop prospecting, avoid developing new skills, or convince themselves that working harder is pointless because the market is supposedly about to fall apart.
This is where informed agents separate themselves from everyone repeating headlines.
Your job is not to panic with the public. Your job is to understand the market, explain the facts, identify genuine opportunities, and help clients make informed decisions.
Key Takeaways
- The COVID housing years were not a normal market.
- Rising foreclosure activity does not automatically mean a housing crisis.
- The 2008 market had fundamentally different lending and inventory conditions.
- Many homeowners currently have substantial equity and favorable mortgage rates.
- Pre-foreclosure homeowners may represent a legitimate service and listing opportunity.
- National housing headlines cannot replace local MLS data.
- Agents must be prepared to work in rising, falling, and balanced markets.
- Fear is not a business plan. Skills, prospecting, and market knowledge are.
Main Points
1. Stop Using the COVID Market as Your Benchmark
The housing market from 2020 through 2022 was shaped by foreclosure moratoriums, mortgage forbearance, stimulus money, historically low mortgage rates, limited inventory, and extraordinary appreciation.
Those conditions were an anomaly.
When real estate agents compare the 2026 market to that period, normal changes can appear catastrophic. A better comparison is 2019—the last broadly normal housing market before the pandemic disruptions.
A market can be slower than the COVID boom without being broken.
2. Rising Foreclosures Do Not Automatically Mean a Crash
Foreclosure filings may be increasing from the unusually low levels created by pandemic-era protections.
That does not mean foreclosure activity is approaching the conditions seen between 2008 and 2010.
Direction matters, but the starting point matters too. An increase from an artificially low number can still leave overall activity near normal historical levels.
Real estate agents must understand that distinction before discussing the market with buyers and sellers.
3. Today’s Homeowners Have Something Many Owners Lacked in 2008
Equity changes the foreclosure equation.
Many homeowners purchased before or during periods of substantial appreciation. Others locked in low mortgage rates. That creates a very different environment from a market filled with weak loans, minimal documentation, rapidly adjusting payments, and homeowners who owe more than their properties are worth.
People generally do not walk away from significant equity without first exploring alternatives.
That does not mean financial hardship has disappeared. Job losses, tax liens, unexpected expenses, insurance problems, and personal crises can still cause missed payments. It means many distressed homeowners may have options that were unavailable during the previous housing crash.
4. Pre-Foreclosures May Be a Real Listing Opportunity
The biggest opportunity may not be waiting for a massive REO wave.
It may be contacting homeowners who have recently received a notice of default and helping them understand their options before the situation becomes worse.
Many of these owners may still have equity. They may be able to sell traditionally, negotiate with their lender, or pursue another solution without losing everything through foreclosure.
Investors frequently contact these homeowners because they want to purchase the property at a discount. A knowledgeable real estate agent may be one of the only people contacting them with the goal of protecting their equity and helping them sell.
This will not be a major opportunity in every market. It may be concentrated in specific price ranges, loan categories, neighborhoods, or property types.
Know your local numbers before choosing it as a lead-generation strategy.
5. National Headlines Cannot Explain Your Local Market
Real estate is local.
Your market may contain one ZIP code where homes sell within days and another ten miles away where listings remain active for months.
Track the numbers that directly affect your clients:
- Active inventory
- New listings
- Price reductions
- Days on market
- Seller concessions
- Multiple-offer activity
- Notice-of-default filings
- Employment and business growth
- Performance by ZIP code and price range
Agents who understand these numbers can speak with authority. Agents who rely only on national headlines will repeat the same generalizations their clients already saw online.
6. Doom-and-Gloom Thinking Can Destroy an Agent’s Career
Believing the market is about to collapse can become an excuse to avoid uncomfortable work.
An agent expecting disaster may postpone completing a pre-listing package, calling expired listings, contacting for-sale-by-owner sellers, following up with leads, or improving negotiation skills.
They tell themselves they are waiting for the market to improve.
The problem is that waiting does not create listings. Prospecting, skill development, follow-up, pricing knowledge, and client service create listings.
When agents assume tomorrow will be worse, they often stop doing the work that could make tomorrow better.
7. Skilled Agents Can Serve Clients in Any Market
Real estate professionals earn commissions by helping people complete transactions. Those transactions happen in appreciating markets, declining markets, and balanced markets.
The required skills may change. The need for skilled representation does not disappear.
In a hotter market, agents must compete for listings and help buyers win.
In a balanced market, agents must price accurately, negotiate concessions, communicate consistently, and manage longer days on market.
In a distressed market, agents may need to understand short sales, REOs, pre-foreclosures, lender communication, and seller hardship.
The serious agent does not need one specific market to succeed. The serious agent learns how to pivot.
This is exactly why experienced coaching and the right professional environment matter. Libertas agents at eXp Realty receive career-focused training designed to help them understand changing markets, develop listing skills, and build businesses that are not dependent on perfect conditions.
Bottom Line
The 2026 housing market is adjusting. That is not the same thing as collapsing.
Foreclosure activity deserves attention, but it must be examined using historical context and local data—not panic-driven headlines.
There may be meaningful opportunities to help homeowners facing early mortgage distress. There are also buyers and sellers who need an agent capable of explaining what is actually happening.
Stop waiting for a market that makes the business easy.
Know your numbers. Learn the required skills. Pick up the phone. Help the people who need you.
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⚠️ Opinions are my own and not the views of eXp Realty.
Income results are not typical. Individual results will vary.
