"A survey of Auction.com buyers in early January 2026 showed that 23% were more willing to buy at auction, up from 19% in the previous quarter. That figure was slightly below the 24% who said market conditions were making them more willing to buy in Q1 2025. The foreclosure auction sales rate slowed in Q4 2025, falling 7% from the previous quarter and 15% from a year ago to reach a 23-quarter low."
"In contrast, the real estate-owned (REO) auction sales rate rose 29% from the previous quarter and one a year ago, partly due to more favorable pricing, Auction.com said. The report found that buyers were willing to pay more at auction in certain markets. Foreclosure auction buyers paid an average of 67.4% of the estimated value, up from 66.2% the third quarter. REO buyers paid 65.2%, up slightly from the previous quarter but down from a year ago."
"Foreclosure properties brought to auction rose 48% year over year to a 23-quarter high. Properties backed by U.S. Department of Veterans Affairs loans saw the largest increase at 428%, reflecting the end of a 2024 moratorium. Properties backed by Federal Housing Administration loans rose 56%, with conventional loans (+33%), private loans (+12%) and U.S. Department of Agriculture loans (10%) following. The roll rate of scheduled foreclosures that reached auction increased to 26.6%, while average loan-to-value ratios remained up 5% from a year ago, indicating lower levels of equity."
Buyer willingness to purchase at auction rose to 23% in early January 2026, up from 19% the prior quarter but slightly below Q1 2025 levels. Foreclosure auction sales slowed in Q4 2025, dropping 7% quarter-over-quarter and 15% year-over-year to a 23-quarter low, with year-over-year declines in 69 of 88 major markets including Chicago, Dallas-Fort Worth, Houston, Atlanta, and St. Louis. REO auction sales increased 29% quarter-over-quarter and year-over-year due to more favorable pricing. Foreclosure buyers paid an average of 67.4% of estimated value; REO buyers paid 65.2%. Properties brought to auction rose 48% year-over-year, led by VA loans (+428%) after a moratorium end, FHA (+56%), conventional (+33%), private (+12%) and USDA (+10%). The roll rate to auction climbed to 26.6% and average loan-to-value ratios rose 5% year-over-year, signaling lower equity. Rising foreclosure auction pricing widened bid-ask spreads and reduced sales, while falling REO pricing narrowed spreads and boosted sales.
Read at www.housingwire.com
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