CA Foreclosure Filings Rise 13% In First Half
Distress is slowly returning to a California market that otherwise looks healthier than it did a year ago. Foreclosure filings across the state rose nearly 13% in the first half of 2026, with bank repossessions among the highest in the nation, a signal that pandemic-era equity cushions and forbearance programs have finally run their course for some owners. At the same time, June home sales rebounded to their strongest pace in six months, the statewide median price eased back from its record, and affordability improved on a national basis. Mortgage rates near 6.55% remain the constraint, but the combination of rising distress and steadier demand is exactly the setup active investors watch for.
In The News:
ATTOM — Foreclosure Activity Posts Annual Increase in First Half of 2026 (July 16, 2026) — California logged 21,543 properties with foreclosure filings in the first six months of the year, up 12.79% from the same period in 2025 and touching one in every 680 housing units. The state posted the third-highest count of foreclosure starts at 16,040 and the second-highest number of bank repossessions at 2,644. Nationally, filings reached 227,548 properties, a 21% annual increase.
Real Estate News — Foreclosures, short sales rise as homeowners weigh their options (July 17, 2026) — Beyond the foreclosure count, short sales climbed 16% year over year in the first quarter as stretched owners looked for an exit ahead of the auction date. Discounts on those deals have narrowed to roughly 20%, far off the 50% spreads of 2022, because most sellers still hold meaningful equity. Average time in foreclosure fell 13% to about 563 days.
C.A.R. — California Home Sales Rebound in June as Home Prices Moderate (July 16, 2026) — Existing single-family home sales hit a seasonally adjusted annual rate of 279,880 in June, up 4.1% from May and 6.0% from a year earlier, the third straight annual gain. The statewide median price slipped 2.8% to $904,640 from May's record, driven by a sales-mix shift toward entry-level and mid-tier homes. Unsold inventory tightened to 3.1 months from 3.8 a year ago.
firsttuesday Journal — Trending mortgage rates (July 17, 2026) — The average 30-year fixed rate rose to 6.55% in the week ending July 17, up from 6.47% a month earlier but still below the 6.75% posted a year ago. The 15-year fixed moved to 5.93%. Rates have stayed range-bound rather than breaking lower, keeping monthly payments elevated for California buyers and holding refinance activity in check.
Mortgage News Daily — Existing-Home Sales Continue Sideways Trend in June (July 9, 2026) — National existing-home sales fell 2.4% in June to a 4.09 million annual pace, though volume still ran 2.8% above last year. The median price set a record $440,600, a 36th consecutive month of annual gains. In the West, sales eased 1.3% to 740,000 units with a median of $633,600. The affordability index improved to 102.3 from 95.5.
