According to an analysis published by the San Diego Union-Tribune, California foreclosure activity has reached its highest level since 2019, though it remains well below Great Recession-era levels.
The Numbers
Citing data from real estate tracker Attom, the Union-Tribune reported California recorded 21,543 homes in some stage of foreclosure during the first half of 2026, a seven-year high. That's about 9% of the nation's 227,548 filings, also a seven-year high nationally. Only Florida (27,494) and Texas (22,000) had more foreclosure activity.
Context Matters
Despite the increase, today's levels remain far below the 2008-2012 crisis. California started 2026 with filings 93% below the 2008-12 average, the second-steepest drop among states behind Nevada (94%). Nationally, foreclosures are running 83% below that era's peak. The report attributed this to tighter lending standards and a stable, if modest, job market helping homeowners keep up with payments.
Foreclosure Rate by State
Measured against total homes owned, California had one foreclosure for every 374 homes in the first half of 2026, the 14th-highest rate nationally, and worse than the national rate of 1 in 415. Washington, D.C. had the highest rate (1 in 235), followed by Florida (1 in 250) and South Carolina (1 in 274). Texas ranked 10th nationally (1 in 347). Vermont, West Virginia, and South Dakota had the lowest foreclosure frequency.
A Modest Uptick
California's foreclosures rose 13% over the past two years, the 12th-smallest increase among states and well below the 28% national increase. Montana (up 127%), Colorado (up 121%), and Wyoming (up 104%) saw the sharpest rises, while Connecticut, Massachusetts, D.C., and Rhode Island saw declines. Texas foreclosures rose 41% over two years, and Florida's rose 37%.
What This Means for San Diego Sellers
For San Diego homeowners considering a sale, this data offers helpful context: despite headlines about rising foreclosures, the local and state housing market remains fundamentally stable compared to historical downturns. The Nathan Group, serving sellers throughout San Diego, helps homeowners navigate today's market with clear, data-driven guidance. Whether you're weighing the right time to list, curious about your home's current value, or simply want an honest read on local conditions.
If you're thinking about selling in San Diego, reach out to the Nathan Group for a personalized market assessment.
Source: San Diego Union-Tribune, based on data from real estate tracker Attom.
