The increasing number of foreclosures has indeed raised concerns about potential threats to the real estate market, with some even drawing parallels to the 2008 housing bubble burst. Nevertheless, real estate experts argue that the current circumstances will not lead to another foreclosure crisis.

According to a recent report by the real estate data company ATTOM, the number of homeowners receiving foreclosure notices in the third quarter of this year has increased by 34% compared to the same period last year, reaching nearly 125,000 households, marking a 28% increase from the previous quarter.

Nationally, one in every 1,121 properties had a foreclosure filing in the third quarter. With the expiration of foreclosure moratoriums implemented during the early stages of the COVID-19 pandemic, this number has almost returned to pre-pandemic levels.

Despite the increase in foreclosures and persistently high housing prices triggering memories of the 2008 housing crisis, real estate experts do not believe that another foreclosure crisis is imminent.

Following the Great Recession, the riskiest mortgage loans, over time, have significantly diminished as repayment amounts escalated sharply. These loans have essentially vanished from the market. Unlike the 2008 housing bubble burst, the current situation does not witness widespread homeowner distress due to unaffordable monthly housing bills.

Mortgage lenders have tightened qualification standards to ensure that only the most creditworthy borrowers obtain loans. This stricter qualification standard has enhanced borrowers' repayment capabilities, reducing the likelihood of mass defaults.

Compared to the period of the Great Recession, the number of homebuyers currently exceeds the available housing inventory. This buyer-favored supply-demand relationship has kept housing prices robust, helping to prevent another steep decline in prices.

While some regions have higher foreclosure rates, such as New Jersey, South Carolina, which were heavily impacted during the foreclosure crisis of the 2000s, not every location nationwide is witnessing an increase in foreclosures.

In fact, some areas have shown a downward trend in foreclosures, including Salt Lake City, Chicago, and Kansas City, Missouri