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While the rest of the country is seeing a rise in foreclosures, the Tri-Cities market is moving in the opposite direction.

During the first half of 2025, 165 local properties had foreclosure filings. That’s a 17.1% decrease from the same period last year. In contrast, foreclosures across the U.S. rose 5.8%, according to ATTOM’s Mid-Year Foreclosure Report.

“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” said Rob Barber, CEO at ATTOM. “While the overall numbers remain below pre-pandemic levels, the persistent rise suggests some homeowners are still facing financial challenges amid today’s housing and economic landscape.”

Some local property owners are facing economic challenges, but the numbers are dramatically lower than pre-pandemic levels.

The Tri-Cities saw a four-year low in foreclosure activity this June, continuing a downward trend that began in 2023. The lowest mid-year total was 83 foreclosures in 2021, and the highest was 880 back in 2018.

• Greeneville had the highest share of foreclosure, with filings accounting for 0.1% of the county’s housing stock.
• Kingsport-Bristol followed with 0.06%.
• The Johnson City metro market share was  0.04%.

The areas with the fewest foreclosures so far this year:

• Scott County, VA – just one filing.
• Unicoi County, TN – four filings.

Foreclosures aren’t the only stress indicator showing the overall regional housing market stability. The percentage of mortgaged properties that are seriously underwater – meaning the homeowner owes more than the home is worth – was 2.4% in the last report. The mid-year update hasn’t been released yet, but current trends suggest that figure may improve further.

While national headlines point to growing financial pressure for homeowners, the Tri-Cities housing market is holding steady. Both foreclosure activity and equity stress levels remain at record lows pointing to a more resilient local economy and a healthier housing market.

Categories: CORE DATA, REAL ESTATE