Want a Discount on Your Next Home? Realtor.com®'s New Report Says Look at Foreclosures

Rhea-AI Summary

News Corp (NASDAQ:NWS) unit Realtor.com released a July 7, 2026 foreclosure market report. It finds the median foreclosed home sold for 27.2% below estimated value as foreclosure listings reached their highest level in six years, representing 1.3% of all homes for sale in April 2026.

Foreclosure listings drew 26.5% more page views in early 2026 but stayed on the market an average of 11 days longer. REO listings typically sell as-is, with fewer photos and shorter descriptions, and are most common in relatively affordable metros such as Lake Charles, Tuscaloosa, Dayton and Baltimore.

News Market Reaction – NWS

+1.50%

+1.50% Session close to close

In the Jul 7 session, NWS gained 1.50%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The report highlights median foreclosure discounts near 27.2% and above-average listing engagement, ...

Analysis

The report highlights median foreclosure discounts near 27.2% and above-average listing engagement, framing foreclosures as a key affordability valve. For shareholders, it reinforces Realtor.com’s data role while rising foreclosure shares remain a macro risk to watch.

Key Figures

Median foreclosure discount: 27.2% below estimated value Foreclosure share of listings: 1.3% Prior foreclosure share: 1.7% +5 more

8 metrics

Median foreclosure discount 27.2% below estimated value Median foreclosed home sale versus AVM valuation

Foreclosure share of listings 1.3% Share of all homes for sale, April 2026

Prior foreclosure share 1.7% Share of listings in April 2020

Extra page views 26.5% more Foreclosure listings vs typical listings, H1 2026

Longer time on market 11 days longer Average for foreclosure listings vs typical listings

Historical REO discount range 20%–35% Median REO discount range since 2018

Fewer listing photos 30.4% fewer REO listings vs standard listings

Foreclosure share in Lake Charles 10.2% at $238,700 June 2026 metro foreclosure share and median list price

Historical Context

5 past events · Latest: Jul 01 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 01	digital acquisition	Neutral	+4.2%	Acquisition of Moving.com and MoveAI to expand digital moving tools.
Jul 01	housing data report	Neutral	+4.2%	Realtor.com June 2026 U.S. housing metrics including prices and inventory.
Jun 30	policy history report	Neutral	-1.7%	Report linking U.S. homeownership trends to major federal housing laws.
Jun 25	luxury market study	Neutral	-0.7%	Realtor.com analysis of seven tiers of the luxury housing market.
Jun 23	investor activity report	Neutral	+1.4%	2025 Investor Report on share of U.S. home purchases by investors.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Realtor.com housing reports and related news have generally been followed by modestly positive share moves, with only small pullbacks on some releases.

Key Terms

real estate owned, reo, statutory right of redemption, avm valuations

4 terms

real estate owned financial

"it becomes Real Estate Owned, or REO, property, often listed on an MLS"

Real estate owned (REO) describes properties that a lender has taken ownership of after a borrower failed to keep up mortgage payments and the bank completed the repossession process. It matters to investors because REO shows up on a lender’s books as unsold inventory—affecting the lender’s financial health, cash flow and future profits—and presents buying opportunities or risks for real estate investors due to repair, holding, and resale costs.

reo financial

"it becomes Real Estate Owned, or REO, property, often listed on an MLS"

REO stands for "real estate owned" and describes properties that a lender or bank has taken ownership of after a borrower failed to keep up mortgage payments and the property did not sell at foreclosure auction. Think of it like a store that had to take back a returned item it couldn’t resell immediately; REO assets can affect a lender’s balance sheet, signal credit stress in a market, and create opportunities or risks for investors in property, mortgage-backed securities, or a company’s financial health.

statutory right of redemption regulatory

"Alabama's statutory right of redemption allows a prior owner to reclaim"

A statutory right of redemption is a legal period after a foreclosure sale during which a debtor or lienholder can reclaim the foreclosed property by paying the required debt, fees and interest set by law. It matters to investors because it affects the finality and timing of real estate or secured-asset transactions—similar to a short window to undo a sale—impacting ownership risk, cash flow timing, and the value of liens or assets involved.

avm valuations technical

"AVM valuations are computed by taking the median of each property's valuations"

Automated valuation model (AVM) valuations are computer-generated estimates of a property's market value that use algorithms, public records, recent sale prices, and other data instead of a physical appraisal. For investors, AVM valuations matter because they can quickly set or update the value of real estate assets, loan portfolios, or securities tied to property—like using a calculator instead of measuring with a tape rule, the result affects reported asset values, pricing, and risk assessments.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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The Median Foreclosed Home Sells for 27% Below Estimated Value — and Gets 26% More Views Than a Typical Listing

AUSTIN, Texas, July 7, 2026 /PRNewswire/ -- Buyers looking for a discount may want to take a closer look at foreclosed homes. According to a new Realtor.com^® report on the state of the foreclosure market, the median foreclosed home sold for 27.2% below its estimated value, as foreclosure listings climbed to their highest level in 6 years.

Foreclosure listings made up 1.3% of all homes for sale in April 2026, up from a recent low and approaching the 1.7% share seen in April 2020. The report also finds that foreclosure listings are drawing more attention than the average listing, getting 26.5% more page views in the first half of 2026, even as they sit on the market an average of 11 days longer.

"Foreclosures are normalizing, not accelerating into a crisis," said Joel Berner, Senior Economist at Realtor.com^®. "This rise is happening because pandemic-era forbearance and moratorium programs fully wound down in 2024, and the homeowners feeling it most are the ones who bought at peak prices and are now squeezed by rising insurance, taxes, and adjustable-rate payments. Even with that pressure, we're looking at a return to 2019 norms, not anything close to the Great Financial Crisis."

When a foreclosed home fails to sell at auction, it becomes Real Estate Owned, or REO, property, often listed on an MLS by the lender, who prices it to sell quickly. The median REO discount has ranged from roughly 20% to 35% since 2018. The high end of that range was reached in 2022 and 2023, when the frenzy of pandemic-era buying inflated automated home valuations and made the discount look larger than it was. As price growth has flattened in 2025 and 2026, the discount has settled back to a more typical 27.2%.

The metros carrying the highest share of foreclosure listings tend to be more affordable ones, where buyers entered homeownership with thinner margins.

Top Metros by Foreclosure Share of Listings, June 2026

Metro	Foreclosure Share of Listings	Median Listing Price (All Homes)
Lake Charles, LA	10.2 %	$238,700
Tuscaloosa, AL	7.7 %	$339,900
Dayton-Kettering-Beavercreek, OH	6.0 %	$260,000
Davenport-Moline-Rock Island, IA- IL	5.7 %	$235,000
Montgomery, AL	5.7 %	$289,575
Redding, CA	5.4 %	$435,248
Pittsburgh, PA	5.3 %	$259,900
Erie, PA	5.2 %	$238,675
Baltimore-Columbia-Towson, MD	5.2 %	$384,750
Mobile, AL	5.1 %	$274,999

With one exception, every metro on this list sits below the national median list price. Three Alabama markets appear in part because of a state-level legal wrinkle: Alabama's statutory right of redemption allows a prior owner to reclaim their property after a foreclosure sale by reimbursing the buyer. That risk keeps auction bidders away and results in more REOs.

REO listings attract plenty of attention, but still generally take longer to sell. The slower pace reflects the product: REO listings had 30.4% fewer photos and descriptions 33% shorter than those of standard listings. Most sell as-is, meaning buyers absorb any needed repairs. Buyers can inspect the interior and use conventional financing, but the condition and limited marketing materials mean many take longer to commit — or they decide to walk away because of the higher level of uncertainty.

"In a market where affordability is still the dominant challenge, foreclosures offer a path to a meaningful discount," said Joel Berner, Senior Economist at Realtor.com^®. "The process takes patience, but for buyers who are prepared and can navigate the challenges of buying this type of home, the savings are real."

Appendix - Top 100 Metros

Metro	Foreclosure Share of Listings	Median Listing Price (All Homes)
Albany-Schenectady-Troy, NY	1.3 %	$449,900
Albuquerque, NM	1.8 %	$420,075
Allentown-Bethlehem-Easton, PA-NJ	1.7 %	$425,000
Atlanta-Sandy Springs-Roswell, GA	0.1 %	$429,000
Augusta-Richmond County, GA-SC	2.1 %	$315,125
Austin-Round Rock-San Marcos, TX	1.7 %	$473,500
Bakersfield-Delano, CA	0.7 %	$410,000
Baltimore-Columbia-Towson, MD	5.2 %	$384,750
Baton Rouge, LA	1.3 %	$299,900
Birmingham, AL	4.0 %	$300,000
Boise City, ID	1.1 %	$625,000
Buffalo-Cheektowaga, NY	2.7 %	$272,500
Cape Coral-Fort Myers, FL	1.3 %	$396,850
Charleston-North Charleston, SC	0.0 %	$499,925
Charlotte-Concord-Gastonia, NC-SC	0.4 %	$440,000
Chattanooga, TN-GA	1.0 %	$399,900
Chicago-Naperville-Elgin, IL-IN	4.4 %	$394,500
Cincinnati, OH-KY-IN	1.0 %	$354,900
Cleveland, OH	0.1 %	$277,000
Colorado Springs, CO	0.6 %	$497,000
Columbia, SC	1.1 %	$307,461
Columbus, OH	2.7 %	$394,500
Dallas-Fort Worth-Arlington, TX	0.1 %	$439,990
Dayton-Kettering-Beavercreek, OH	6.0 %	$260,000
Deltona-Daytona Beach-Ormond Beach, FL	0.6 %	$379,795
Denver-Aurora-Centennial, CO	0.6 %	$589,000
Detroit-Warren-Dearborn, MI	1.8 %	$275,000
Durham-Chapel Hill, NC	0.1 %	$487,450
El Paso, TX	1.1 %	$309,725
Fresno, CA	1.6 %	$480,000
Grand Rapids-Wyoming-Kentwood, MI	0.2 %	$432,475
Greensboro-High Point, NC	0.1 %	$333,388
Greenville-Anderson-Greer, SC	0.5 %	$389,900
Harrisburg-Carlisle, PA	1.9 %	$350,000
Houston-Pasadena-The Woodlands, TX	1.7 %	$362,265
Indianapolis-Carmel-Greenwood, IN	0.2 %	$321,450
Jackson, MS	2.2 %	$288,950
Jacksonville, FL	0.1 %	$399,000
Kansas City, MO-KS	1.5 %	$415,000
Kiryas Joel-Poughkeepsie-Newburgh, NY	0.1 %	$595,000
Knoxville, TN	1.2 %	$462,450
Lakeland-Winter Haven, FL	1.9 %	$335,000
Las Vegas-Henderson-North Las Vegas, NV	1.3 %	$474,950
Los Angeles-Long Beach-Anaheim, CA	0.5 %	$1,099,950
Madison, WI	0.3 %	$497,906
McAllen-Edinburg-Mission, TX	2.0 %	$260,000
Memphis, TN-MS-AR	0.3 %	$302,500
Miami-Fort Lauderdale-West Palm Beach, FL	0.7 %	$499,000
Minneapolis-St. Paul-Bloomington, MN-WI	2.1 %	$439,450
Nashville-Davidson--Murfreesboro-- Franklin, TN	0.0 %	$539,945
New Orleans-Metairie, LA	5.1 %	$299,000
New York-Newark-Jersey City, NY-NJ	0.2 %	$792,000
North Port-Bradenton-Sarasota, FL	1.1 %	$485,000
Orlando-Kissimmee-Sanford, FL	1.1 %	$419,990
Oxnard-Thousand Oaks-Ventura, CA	0.3 %	$984,735
Palm Bay-Melbourne-Titusville, FL	0.4 %	$375,000
Philadelphia-Camden-Wilmington, PA-NJ- DE-MD	4.7 %	$389,900
Phoenix-Mesa-Chandler, AZ	1.9 %	$489,500
Pittsburgh, PA	5.3 %	$259,900
Port St. Lucie, FL	1.4 %	$432,500
Portland-South Portland, ME	0.2 %	$650,000
Portland-Vancouver-Hillsboro, OR-WA	1.5 %	$598,950
Providence-Warwick, RI-MA	1.0 %	$599,675
Raleigh-Cary, NC	0.2 %	$457,000
Richmond, VA	0.2 %	$450,000
Riverside-San Bernardino-Ontario, CA	0.5 %	$595,000
Rochester, NY	2.3 %	$324,900
Sacramento-Roseville-Folsom, CA	2.0 %	$629,500
Salt Lake City-Murray, UT	0.1 %	$570,450
San Antonio-New Braunfels, TX	0.3 %	$325,000
San Diego-Chula Vista-Carlsbad, CA	0.4 %	$929,000
San Francisco-Oakland-Fremont, CA	1.9 %	$996,500
San Jose-Sunnyvale-Santa Clara, CA	0.2 %	$1,385,000
Scranton--Wilkes-Barre, PA	0.8 %	$278,450
Seattle-Tacoma-Bellevue, WA	1.4 %	$783,250
Spokane-Spokane Valley, WA	2.0 %	$499,000
St. Louis, MO-IL	3.5 %	$290,000
Stockton-Lodi, CA	1.5 %	$599,463
Syracuse, NY	4.1 %	$319,950
Tampa-St. Petersburg-Clearwater, FL	1.2 %	$399,925
Toledo, OH	1.8 %	$224,950
Tucson, AZ	1.9 %	$385,000
Urban Honolulu, HI	0.1 %	$677,350
Virginia Beach-Chesapeake-Norfolk, VA- NC	0.6 %	$439,100
Washington-Arlington-Alexandria, DC-VA- MD-WV	1.9 %	$585,000
Winston-Salem, NC	0.1 %	$338,000

Methodology
Foreclosure sales are identified as those with the REO sale flag in Realtor.com deed data. Foreclosure listings are identified as those with the REO flag in Realtor.com listing data. AVM valuations are computed by taking the median of each property's valuations within the month that the home sold, and the sale price is compared against the valuation to compute the discount. Listing performance metrics are computed by comparing the statistics for each listing against the medians for that listing's property type and zip code if there are at least 50 listings in the zip code or metro area if there are not 50 listings in the zip code. The difference between the individual listing's metrics and the local median is computed and the median of those differences is taken to determine the overall difference between foreclosure listings and typical listings.

About Realtor.com^®
For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com^® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Emily Do, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/want-a-discount-on-your-next-home-realtorcoms-new-report-says-look-at-foreclosures-302818607.html

SOURCE Realtor.com

FAQ

What does the July 7, 2026 Realtor.com foreclosure report mean for News Corp (NWS) investors?

The July 7, 2026 report highlights Realtor.com’s housing data capabilities, which may support user engagement and advertising potential. According to Realtor.com, foreclosure listings received 26.5% more page views than typical listings in early 2026, signaling sustained consumer interest in its platform.

How much below estimated value do foreclosed homes sell for in the 2026 Realtor.com report?

According to Realtor.com, the median foreclosed home sold for 27.2% below its automated valuation in recent data. This discount reflects Real Estate Owned (REO) properties typically being priced to sell quickly, often sold as-is and attracting buyers willing to manage repairs and uncertainty.

What share of U.S. home listings were foreclosures in April 2026 according to Realtor.com?

According to Realtor.com, foreclosure listings represented 1.3% of all homes for sale in April 2026. This level is above a recent low and is approaching the 1.7% share seen in April 2020, suggesting a normalization toward pre-pandemic foreclosure conditions.

Do foreclosure listings sell faster or slower than typical homes in the 2026 Realtor.com data?

According to Realtor.com, foreclosure listings generally take longer to sell, staying on the market an average of 11 extra days. Despite this, they receive 26.5% more page views, reflecting buyer interest but also hesitation due to as-is condition and limited marketing information.

Which metros have the highest foreclosure share of listings in the 2026 Realtor.com report?

According to Realtor.com, June 2026 metros with the highest foreclosure shares include Lake Charles (10.2%), Tuscaloosa (7.7%), Dayton (6.0%), and Baltimore (5.2%). These markets tend to have lower median list prices and, in Alabama, are affected by statutory right of redemption rules.

How does the 2026 Realtor.com report describe the overall U.S. foreclosure trend?

According to Realtor.com’s senior economist, foreclosures are normalizing rather than turning into a crisis. The rise follows the end of pandemic-era forbearance and moratorium programs, with conditions moving back toward 2019 norms and remaining far from Great Financial Crisis levels.

Why might some Alabama metros show elevated foreclosure listing shares in the Realtor.com data?

According to Realtor.com, Alabama’s statutory right of redemption allows former owners to reclaim foreclosed homes after sale by reimbursing buyers. This legal risk can discourage auction bidders, resulting in more properties becoming Real Estate Owned (REO) and appearing as foreclosure listings.