Home foreclosure rates up 30% in metro Phoenix, yet analysts aren't concerned

By Angela Gonzales

Despite rising national home foreclosure rates, local analysts aren't so concerned about metro Phoenix.

Through September, there are 1,303 active notices of trustee sale in Maricopa County, up 30% from the same period in 2024, said Sarah Perkins, director of industry research and senior account executive for Glendale-based Navi Title Agency.

While 30% might seem concerning, context is key, she said.

"While this might seem like a big increase, we are working from very low numbers," she said. "We are only a few hundred up from all-time lows."

At the height of the foreclosure crisis between 2008 and 2011, there were more than 10,000 active notices, she said.

"If we look at the past 10 years, notices average about 1,560 a month," she said. "And if we just take the average from 2015 to 2019, there were about 2,340 a month."

Between 2015 and 2019, distressed properties weren't part of the real estate conversation, she said.

"Even in the best market conditions, there are some who struggle to make their mortgage payments," she said. "If we just look at 2019 — the golden year that everyone measures the current market against — there was a monthly average of 1,895 notices a month. Our current numbers are 31% lower than the 2019 average. While it is important to pay attention to these numbers, there is no indication of a looming foreclosure crisis."

Mike Orr, owner of The Cromford Report, said the last five years have been very quiet for foreclosures in Arizona.

"Delinquency levels for home loans remain below the long-term average," he said. "And in 2025, we are seeing fewer foreclosures than way back in 1996. It is in credit card debt and car loans where today's delinquency problems really lie. This is not like 2005."

Nationwide, foreclosure activity edged down slightly month-to-month, but remains 20% higher year-over-year, according to ATTOM's September 2025 foreclosure report.

Florida, Delaware and Nevada were the three states hit hardest by foreclosure rates, according to that report.

ATTOM also just released its Q3 U.S. Home Sales Report, which shows home sellers averaged 49.9% on single-family home and condo sales.

"While margins remain below pandemic-era peaks, the steady performance reflects a market finding balance amid rising prices and easing mortgage rates," according to that report.

The 30-year fixed-rate mortgage averaged 6.27%, according to Freddie Mac's Primary Mortgage Market Survey released on Oct. 16.

That's down from 6.3% last week and 6.44% last year, according to the latest survey.

“Mortgage rates inched down this week and have held relatively steady over the past several weeks,” said Sam Khater, chief economist at Freddie Mac (OTCQB: FMCC).

“Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity," Khater said in a prepared statement when releasing the new rate. "Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home."

Final Thoughts:
Although metro Phoenix foreclosure filings are up 30% year-over-year, analysts emphasize perspective. Current levels remain far below historic averages, with no signs of a foreclosure crisis looming. Strong home equity, steady employment, and stable mortgage performance continue to keep Arizona’s housing market resilient and balanced.