Foreclosure filings eased to a three-year low last year, a sign that the housing market may be stabilizing after several years of challenging conditions.

Fewer Americans faced default notices, scheduled auctions, or bank repossessions, according to a report from real estate data firm ATTOM. At 322,103, foreclosure filings in 2024 were 10% lower than in 2023 and down roughly 35% from the pre-pandemic levels in 2019.

“This year’s data points to foreclosure trends potentially returning to more predictable levels, offering some clarity for industry professionals, investors, and homeowners,” said ATTOM Chief Executive Officer (CEO) Rob Barber. 

Foreclosures Below Pre-Pandemic Levels

The 2024 foreclosure filings represent roughly 0.23% of all U.S. housing units. To put that in context, the foreclosure rate plummeted to 0.11% in 2021 because of temporary protections in the pandemic era. Those figures were closer to 0.36% in 2019.

“While foreclosure filings remain a critical metric for understanding market health, current trends may point to a more balanced landscape, potentially shaped by careful lending practices and ongoing homeowner resilience,” Barber said.