Foreclosure listings are climbing to their highest level since 2020, but housing experts say homebuyers shouldn’t mistake the uptick for the start of another housing meltdown.

Instead, the growing inventory could spell opportunity for bargain hunters looking to score homes at deep discounts.

“People are probably wondering if this is the highest since 2020; does that mean that we’re heading towards some sort of foreclosure crisis or crash like we saw in 2008?” Realtor.com Senior Economist Jake Krimmel told The California Post, before underscoring that it’s very “far from the case.” 

Instead, Krimmel argued the rise in foreclosures is actually a market “normalization” due to pandemic-era relief programs like mortgage forbearance and payment deferral recently ending. 

“We’ve come off really historic lows that any uptick is going to draw some attention,” Krimmel said. 

Foreclosure listings made up 1.3% of all homes for sale in April 2026, the highest level since 2020, when the share of foreclosures approached 1.7%, according to Realtor.com data. 

In June 2026, Lake Charles, Louisiana, had the highest share of foreclosures of any metro area at 10.2%, while Redding, California, ranked sixth at 5.4%. 

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But while the share of foreclosures has ticked up, the prices to purchase have dipped dramatically — offering buyers a chance to score a home about 27% below its estimated value, according to Realtor.com data. 

“Just the mere fact that it was a foreclosure listing carries about a 27 percent discount,” Krimmel said. 

With an unaffordable housing market and high interest rates, the discount might offer the perfect chance for someone to get into a home — but it’s not without risk. 

“Typically, these foreclosed homes sell as is; they might not be in the best shape,” Krimmel told the Post. “I think it’s probably a better opportunity for someone who is thinking of rehabbing, a fixer-upper, investor, that sort of thing.” 

On the other hand, Krimmel said if a first-time homebuyer is open to taking a slight gamble, it could be a perfect opportunity.

“If it’s selling for 20-30% less than it otherwise would just because it has the foreclosure label on it, for the right first-time buyer it could be a solution in a high-cost market like California,” Krimmel told the Post.