An emerging source of affordable housing supply

Foreclosure auction volume increased 23% in the second quarter of 2026 compared to a year ago, matching a six-year high from the previous quarter and the sixth consecutive quarter with an annual increase. Meanwhile, auction sellers — mostly mortgage servicers, banks and government agencies — lowered average pricing at foreclosure auctions by 3% from the previous quarter. Seller pricing was down 4% from a six-year high in the fourth quarter of 2025. Higher volume + lower pricing = More demand at foreclosure auction The combination of rising volume and lower pricing is boosting demand from the local community developers who regularly buy at auction. “The last few years we’ve been averaging about 18 to 20 properties,” said Michael Regan, a Dallas area real estate investor who primarily buys properties at foreclosure auction. “This year I’m probably tracking maybe about 24 to 30.” According to the Q2 2026 Auction Market Dispatch published last week, more than 10,000 properties were brought to foreclosure auction in the second quarter of 2026 on the Auction.com platform — which accounts for about 40% of all foreclosure auctions nationwide — up 23% from a year ago. Nearly 5,000 of those ...