Why Today’s Foreclosure Numbers Aren’t a Warning Sign for Southwest Florida

Why Today’s Foreclosure Numbers Aren’t a Warning Sign for Southwest Florida

In a time when the cost of living seems to be increasing everywhere, it’s natural to feel a little uneasy—especially when it comes to the housing market. In Southwest Florida, where demand in areas like Sarasota, Lakewood Ranch, and Venice has remained strong, questions are emerging about whether rising expenses could lead to a surge in foreclosures. Recent data showing a slight uptick in filings has only added to those concerns.

But context matters—and the truth is, today’s market is nothing like the 2008 crash.

This Is Not 2008

While it’s true that foreclosure filings ticked up slightly in Q1 2025, they’re still significantly lower than what’s considered normal—and far below the levels we saw during the housing crisis. If you visualize the data, the contrast is striking. (see graph below):

The mid-2000s were marked by risky lending practices that left many homeowners with unaffordable mortgages. The result was a flood of distressed properties and plummeting home values.

Today, that scenario simply doesn't apply.

Lending standards are much stricter, and buyers in markets like Sarasota and Lakewood Ranch are generally more financially secure. Foreclosure filings today remain well below historical averages. The recent bump is only noticeable when compared to the unusually low numbers from 2020–2021—a period when foreclosure moratoriums were in place due to the pandemic.

Why We Haven’t Seen a Surge in Foreclosures

One of the biggest reasons foreclosures remain under control is homeowner equity. In Venice and across Sarasota County, home prices have seen steady growth in recent years. This has created a cushion for homeowners—even those experiencing financial challenges.

Rob Barber, CEO of ATTOM, puts it this way:

“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges. However, strong home equity positions in many markets continue to help buffer against a more significant spike . . .”

Essentially, if someone in Lakewood Ranch or Venice is struggling with their mortgage, chances are they can sell their home and walk away with money in their pocket—rather than being forced into foreclosure. That’s a major difference from the crisis-era market, when many homes were worth less than what was owed on them.

Rick Sharga, Founder and CEO of CJ Patrick Company, reinforces this idea:

“. . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”

The Bottom Line

In Southwest Florida, where real estate remains a solid investment, the modest rise in foreclosure activity is not a red flag. It’s a reflection of normal market adjustments—not the beginning of a downturn. Homeowners across Sarasota, Lakewood Ranch, and Venice are still in a strong financial position thanks to significant equity gains and responsible lending.

If you’re a homeowner facing hardship, don’t wait—reach out to your mortgage provider. There are options available that could help you stay in your home or sell it on your terms.

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