Foreclosure filings rose 14% in 2025

Plus: Homebuilder confidence dips in January

January 20, 2026

☕️ Good morning. This is Texas Real Estate News. The newsletter that pairs perfectly with your morning coffee. Let’s dive into what we’ve got for you today—a 2.5-minute read.

1. Homebuilder confidence dips in January

According to the NAHB Housing Market Index, builder confidence in the market for newly built single-family homes fell two points to 37 in January, down 10 points from a year ago.

The survey found that 65% of builders reported using sales incentives, marking the 10th consecutive month that the share has remained above 60%.

40% of builders reported cutting prices in January, unchanged from December. Meanwhile, the average price reduction rose to 6% in January, up from 5% in December.

2. Foreclosure filings rose 14% in 2025

According to an ATTOM report, foreclosure filings were reported on 367,460 properties in 2025, up 14% from 2024 and 3% higher than in 2023. In December alone, 44,990 properties had foreclosure filings, a 26% increase from November and 57% higher than in 2024.

Texas recorded the highest number of foreclosure starts, with 37,215 filings. Among metropolitan areas with populations over 1 million, Houston ranked third, with 13,009 foreclosure starts.

“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels. While filings, starts, and repossessions all rose compared to 2024, foreclosure activity remains well below pre-pandemic norms and a fraction of what we saw during the last housing crisis.”

Rob Barber, CEO at ATTOM

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

Bridge Loan Battle!!

Rocket Mortgage vs DYMG
Rocket Mortgage just launched their bridge loan and I did a full breakdown comparing it to mine. Spoiler alert: Mine is Better, but tune in for why I am the Bridge Loan Champ!

In this Video go over:
✅ Credit Score Rocket Requires
✅ Rocket only gives you 6mths, I can go longer
✅ I don’t require the home to be listed or under contract
✅ VA and FHA buyers? I’ve got them covered too
✅ Also checkout 10 Other Crazy Ways to use my Bridge Loan!
If you’ve got clients trying to buy before selling or ones tight on cash I’ve got a solution that helps more deals get across the finish line.

You got a weird situation, Let’s Talk!

3. Catch up quick

🏘️ Investors are scooping up discounted townhomes in Texas. (Cotality)

📚 Land Board announces continuation of free Texas real estate CE course. (GLO)

🏠 Investor share of home purchases hits 5-year high. (BatchData)

⬇️ Monthly housing costs post their biggest decline in over a year. (Redfin)

🤖 OpenAI plans ads in ChatGPT. (OpenAI)

4. Pending home sales hit a new low

According to a Redfin report, pending home sales fell 5.9% month over month in December, reaching the lowest seasonally adjusted level on record outside of April 2020. This was the largest monthly decline since September 2022. On a year-over-year basis, pending sales dropped 7.4%.

Homes that went under contract in December spent an average of 60 days on the market, the slowest December pace in a decade, and six days longer than a year earlier.

New listings of homes for sale also declined, falling 1.4% month over month to the lowest seasonally adjusted level since January 2024, and down 4.9% year over year.

5. Trump's housing plan to allow 401(k) money for down payments

The Trump administration plans to allow investors to use some of their retirement funds toward a home down payment, White House economic adviser Kevin Hassett said on Friday, adding that more details will be released this week.

Hassett explained that the mechanics are still being worked out, but the idea is that a homebuyer could withdraw money from their 401(k) for a down payment. Once the home’s equity grows, a corresponding amount could be added back to the retirement account as an asset.

“Suppose that you put 10% down on a home, and then you take 10% of the equity of the home and put it as an asset in your 401(k). Then, your 401(k) will grow over time as the value of your house grows.”

Kevin Hassett, White House economic adviser

☀️ Thank you for starting your day with us!

If you like this newsletter, your friends may too. Forward it to a friend, and let them know they can subscribe here.

Interested in advertising to 35k+ Texas Realtors? Email [email protected]