Homeowners and buyers often ask, “How do we know if foreclosures are coming back?” The answer lies in three leading indicators:
Right now, demand is below normal. San Diego is seeing about 2,000 home sales per month, when a more balanced market would see closer to 3,000–3,200 sales. This is the one red flag currently flashing—buyers are holding back due to higher mortgage rates.
Nationwide inventory sits around 1.55 million homes for sale. To put that in perspective, during the Great Recession, inventory ballooned to 4 million homes. Today’s numbers don’t point to an oversupply problem.
Distressed sales (short sales, foreclosures, etc.) make up less than 1% of the market today. In 2009, they were nearly 45% of all transactions. That massive wave of distressed properties drove prices down back then—something we aren’t seeing in 2025.
Of the three foreclosure warning signs, only low buyer demand is present. And even that may be temporary, as mortgage rates are trending down from September 2025 through the year’s end.
If you’d like a free report on which San Diego ZIP codes are appreciating the most, call or text me directly at 619-846-1244.
George Lorimer
ProWest Properties | DRE #01146839 | *Conditions apply