Housing Market Shifts Toward Single-Family Homes as Foreclosures Slowly Rise

The latest data shows a clear shift in buyer preference away from apartment-style homes and toward single-family detached properties. Apartment-style sales declined by 12 percent compared with the prior year, while single-family detached homes saw a 5 percent increase in sales. That kind of divergence is unusual and signals a meaningful change in what buyers are prioritizing, likely driven by affordability calculations, lifestyle preferences, and concerns around shared living environments and recurring costs.

Another notable development is the rise in completed foreclosures, which are nearly double the level seen one year ago. While this increase may sound alarming at first glance, it is important to keep the numbers in context. Foreclosure volumes remain relatively low by historical standards and are still below what would be considered normal in a long term sense. That said, the direction of travel matters, and the data suggests foreclosures are gradually normalizing after an extended period of unusually low activity.

The market has also experienced a clear swing away from new home sales and back toward resale. New home transactions declined by 9 percent year over year, while resale activity increased by 2 percent. This reversal suggests that builder incentives may be losing some of their edge, or that buyers are finding better relative value and selection in the resale market as inventory has expanded.

Taken together, these trends point to a market that is becoming more segmented and selective. Buyers are gravitating toward detached homes, resale activity is regaining momentum, and foreclosure activity is slowly re-entering the picture without yet posing systemic risk. These shifts reflect a market that is adjusting to higher rates, changing affordability dynamics, and more deliberate buyer behavior rather than one heading toward crisis.

"Faith is taking the first step even when you don't see the whole staircase."
-Martin Luther King, Jr.

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