Foreclosure activity is increasing across the United States, and many homeowners are wondering if another housing crash is around the corner.

National foreclosure filings increased approximately 9% from the fourth quarter of 2025 to the first quarter of 2026. Here in Maricopa County, Notices of Trustee Sale increased about 25% compared to last year.

At first glance, those numbers sound alarming.

However, when we compare today's foreclosure activity to historical levels and examine the amount of equity homeowners currently have, a very different picture emerges.

In this week's Chandler Market Update, we'll break down what the latest foreclosure data means for homeowners, buyers, and sellers throughout Chandler and the Phoenix Metro area.

Key Market Highlights

Foreclosure Activity Is Rising, But From Historically Low Levels

National foreclosure filings increased approximately 9% quarter-over-quarter, while Maricopa County Notices of Trustee Sale increased about 25% compared to last year. Although the increase sounds significant, today's foreclosure activity remains dramatically lower than levels experienced during the 2008 housing crisis.

Today's Foreclosure Levels Are Far Below Housing Crash Numbers

During the housing crash, the United States experienced nearly 900,000 foreclosure filings per quarter. Today, foreclosure activity sits around 110,000 to 120,000 filings per quarter, representing only a fraction of historical crisis levels.

Maricopa County Foreclosure Activity Remains Extremely Low

Current Notices of Trustee Sale average approximately 500 per month in Maricopa County. During the Great Recession, that number exceeded 10,000 notices per month, meaning today's activity remains roughly 95% below peak foreclosure levels.

Mortgage Delinquencies Remain Near Historic Lows

While credit card and auto loan delinquencies continue increasing, mortgage delinquency rates remain near historic lows. Homeowners are prioritizing their mortgage payments above most other financial obligations.

Arizona Homeowners Have Significant Equity

The average Arizona homeowner currently holds approximately $280,000 in home equity. Nationally, homeowners average roughly $295,000 in equity, creating a substantial financial cushion that helps prevent foreclosure.

Equity Is Acting As A Financial Safety Net

Unlike the 2008 housing crisis, most homeowners today have substantial positive equity. If financial hardship occurs, many homeowners can sell their property, preserve their equity, and avoid foreclosure altogether.

Buyer & Seller Insights

What This Means For Sellers

If you're a homeowner in Chandler, the recent increase in foreclosure activity should not automatically be interpreted as a warning sign of a market crash.

Most homeowners continue to hold strong equity positions, mortgage delinquencies remain low, and foreclosure inventory is nowhere near crisis levels. This reduces the likelihood of a large wave of distressed properties entering the market and significantly impacting home values.

Seller Takeaway:

• Don't let national headlines create unnecessary fear.

• Focus on local Chandler and Maricopa County market data.

• Your equity position may be stronger than you realize.

• Proper pricing remains critical, but widespread distress selling is not currently evident.

What This Means For Buyers

Many buyers assume rising foreclosures automatically create buying opportunities. However, current data suggests foreclosure inventory remains limited.

Waiting for a large foreclosure wave similar to 2008 may not be a realistic strategy in today's market. Buyers should instead focus on affordability, monthly payment comfort, and long-term financial goals.

Buyer Takeaway:

• Rising foreclosures do not necessarily indicate a housing crash.

• Distressed inventory remains historically low.

• Strong homeowner equity continues to support market stability.

• Buy based on your financial readiness, not fear-driven headlines.