By DON FENLEY

Foreclosure activity across the Tri-Cities held steady in February even as the national market continued its gradual climb from pandemic-era lows, according to the latest data from ATTOM.

The region recorded 35 foreclosure filings in February 2026, unchanged from January but up 40% from the same month last year. The year-over-year increase reflects the broader normalization of foreclosure activity after several years of low distress levels.

Nationally, the February 2026 U.S. Foreclosure Market Report showed a similar pattern but with slightly different timing. U.S. foreclosures fell 4% from January but were up 20% from a year earlier, extending a gradual rise that has been underway since early 2025.

“Foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year,” said Rob Barber. “While filings dipped slightly from January, both foreclosure starts and completed foreclosures remain higher than a year ago. Even with the continued rise, overall foreclosure levels remain well below historic norms.”

While the national market has posted 12 straight months of year-over-year increases, the Tri-Cities foreclosure pattern has moved somewhat differently.

Local filings surged beginning in August 2025. They peaked late in the year before easing into early 2026.

Much of the earlier volatility reflects the unusually strong post-pandemic housing boom, which ballooned homeowner equity across the region. Rising home values provided many distressed owners with alternatives instead of entering foreclosure.

As home price growth and economic conditions stabilize, foreclosure activity is expected to settle into levels more closely tied to underlying housing, employment, and economic conditions.

Metro Comparison Signals Different Stress Levels

Last month’s data points to subtle differences in financial stress in the region’s two metro areas.

The Johnson City metro area recorded one fewer foreclosure and one fewer repossession than the Kingsport-Bristol metro. But given the larger size of the Kingsport-Bristol market, the comparison indicates slightly greater relative financial pressure in the Johnson City metro area.

Foreclosures Still Far Below Crisis-Era Levels

Despite the recent increases, foreclosure activity across both the Tri-Cities and the United States remains well below historic norms seen during the housing crisis more than a decade ago.

The current cycle reflects normalization after several years of unusually low distress driven by pandemic-era protections, strong price appreciation, and tight housing supply.

For the Tri-Cities housing market, the emerging pattern suggests foreclosures are likely to stabilize at a level that reflects the region’s combined housing, employment, and economic fundamentals, rather than the artificially low levels seen earlier in the decade.

Categories: REAL ESTATE