Foreclosures in Metro Phoenix October 2026

We are defining foreclosures as a group of "distressed properties" known as bank repossessions, short sales, and auctions that are listed in the Arizona Regional MLS. We use data only from Maricopa and Pinal Counties to keep the data relevant to the Metro Phoenix Area.

Summary of Activity

The 85 distressed property sales in September 2026 are:

-12 less than August
+44 more than last September 2025
337% of the 3-year, monthly average of 25 (2023-2025)
58 were bank owned / HUD / auction, 27 were short sales, and 35 short sales were canceled and NOT counted in the totals. The percentage of short sales that actually closed escrow was 43.5%.

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Comparison of "ACTIVE" Annual Distressed Properties Listed for Sale

The above chart indicates SOLD properties. This data is a cumulative number of distressed properties listed for sale from the beginning of the year. *It's only another way of looking at distressed property trends.*

On an annual basis:

2,788 for 2025
979 for 2024
955 for 2023
663 for 2022
307 for 2021
984 for 2020

NOTE: A property will get counted each month it's still active on the market. Therefore, a distressed sale on market for 6-months would get counted 6 times. Also, many short sales get canceled. These are reasons that actual sales are much lower than those that get counted as active listings..

Foreclosures in Metro Phoenix

Foreclosures in Metro Phoenix significantly influence the local housing market, affecting home prices, inventory, and buyer behavior. When homeowners default on mortgages, lenders repossess properties, often selling them at auctions or discounted prices. This influx of foreclosures in Metro Phoenix can increase housing inventory, providing buyers with more options and potentially lowering median home prices.

However, foreclosures in Metro Phoenix remain relatively low compared to the 2008 crisis, when hundreds of homes were auctioned daily. In 2024, only 278 homes were sold in the MLS as foreclosure type properties in the region, a stark contrast to the thousands during the Great Recession. This low foreclosure rate, coupled with strong homeowner equity, stabilizes the market, preventing a crash. Most homeowners can sell to avoid foreclosure, maintaining price stability despite economic pressures like higher mortgage rates.

Foreclosures in Metro Phoenix also attract investors seeking bargains. This investor activity can reduce available inventory for traditional buyers, driving competition and keeping prices elevated in some neighborhoods. Conversely, a surge in foreclosures in Metro Phoenix could signal economic distress, deterring buyers and softening demand.

Overall, foreclosures in Metro Phoenix act as a double-edged sword: they offer opportunities for affordable purchases but can depress local home values if they spike. With the region’s strong job and population growth, the market remains resilient, but monitoring foreclosure trends is crucial for predicting future stability.