HousingWire Daily Daren Blomquist on the rise of distressed property auctions
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Aug 13, 2025 
Daren Blomquist, Vice President of Market Economics at Auction.com, dives into the booming landscape of distressed property auctions. He reveals a 20% rise in foreclosures, especially in the Southeast, hinting at an ongoing housing market downturn. The conversation also sheds light on fluctuating prices at these auctions and the pivotal role of local investors in revitalizing communities. Blomquist emphasizes that the increase in foreclosures could be a return to historical norms, coupled with new tools to aid homeowners.
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Distressed Auctions Are Rising, But Not A Tsunami
- Foreclosure and REO auction volume rose ~20% year-over-year to two-year highs in Q2 2025.
- Yet both remain well below 2019 pre-pandemic levels, so this is a normalization rather than a new crisis.
Retail Weakness And Distress Feed Each Other
- Softness in the retail market is rippling into the distressed market and vice versa, creating a feedback loop.
- Reduced equity and fewer retail buyers make foreclosure avoidance harder and can pressure home prices further.
Distress Is Broadening Across Loans And Markets
- Increases in foreclosures are broad across loan types and markets, not just FHA/VA or a few metros.
- Growing delinquencies in other consumer credit have begun to ripple into mortgage delinquencies now that homeowner equity cushions are eroding.