FIGURE 5. VACANT REO AUCTIONS AT FIVE-YEAR HIGH
Vacant REO auctions are often more appealing to a broader spectrum of distressed property buyers, including those using private lending or other financing to purchase. Because the property is vacant, there is a better chance of getting an interior inspection, or at the very least an interior appraisal from the bank selling the property, to help more accurately assess the true “as-is” value. “Especially interested in vacant properties instead of occupied,” wrote a Missouri-based Auction.com buyer in response to the July survey. That respondent said market conditions have not impacted his willingness to buy at auction and that he’s eager to see more inventory available at auction. “Not enough properties to bid on.”
That buyer may get his wish if rising foreclosure volume trends from the first half of 2025 continue in the second half of the year, as the data indicate will happen.
(up 100%), Detroit (up 46%), Atlanta (up 58%), and Phoenix (up 215%).
LIFTING THE BANK- OWNED BOAT
The rising tide of foreclosure auctions also helped lift the volume of bank-owned (REO) auctions in the second quarter of 2025. Properties revert to the foreclosing bank or lender as REO if they do not sell to third- party buyers at the foreclosure auction. REO auctions in the second quarter of 2025 increased 10% from the previous quarter and were up 20% from a year ago to a more than two-year high. REO auctions on vacant properties increased at an even faster pace, up 31% from a year ago to a five- year high (see Fig. 5).
DAREN BLOMQUIST
Daren Blomquist is vice president of market economics at Auction.com. In this role, he analyzes and forecasts complex macro and microeconomic data trends within the marketplace and industry to provide value to both buyers and sellers.
36 | think realty magazine :: september - october 2025
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