Auction.com: Q1 2026 foreclosure auction activity is nearing pre-pandemic levels

Auction volume moved closer to pre-pandemic norms in the first quarter of 2026, with both foreclosure and real estate-owned (REO) auction activity rebuilding in a pattern that points to continued normalization rather than a new distressed-property crisis, according to Scheduled foreclosure auctions climbed to roughly 69% of their Q1 2020 level, an 11% quarterly gain and 16% annual increase, signaling more For Among the highest-volume MSAs with declining sales rates, Buyer price demand — the share of estimated retail market value (ERV) that buyers are willing to pay at auction — improved from late 2025 at both REO and foreclosure sales, but year-over-year trends diverged.

At REO auction, buyers were willing to pay an average of 67.3% of ERV in Q1 2026, up from 64.6% in Q4 2025 but down from 68.6% in Q1 2025. That level represents about 102% of the Q1 2020 benchmark, indicating that REO buyer price demand has largely normalized above its pre-pandemic reference point, according to Auction.com.

At foreclosure auction, buyers were willing to pay an average of 67.6% of ERV, up from 66.8% in the prior quarter and essentially unchanged from a year earlier. That equates to roughly 94% of the Q1 2020 level, signaling that foreclosure auction buyer price demand remains slightly below pre-pandemic norms even as it improves sequentially.

Buyer price demand also split almost evenly between markets recording gains and declines. Forty-eight MSAs, or about 49%, saw higher buyer price demand than a year ago, and 49 MSAs, or about 51%, recorded declines.

Among high-volume MSAs with declining seller pricing,