{"id":3784,"date":"2026-07-17T22:08:30","date_gmt":"2026-07-17T22:08:30","guid":{"rendered":"https:\/\/americanmovershub.com\/?p=3784"},"modified":"2026-07-17T22:08:30","modified_gmt":"2026-07-17T22:08:30","slug":"short-sales-spiked-during-the-great-recession-heres-the-nations-new-hot-spots-where-home-sellers-are-underwater","status":"publish","type":"post","link":"https:\/\/americanmovershub.com\/?p=3784","title":{"rendered":"Short sales spiked during the Great Recession. Here\u2019s the nation\u2019s new hot spots where home sellers are underwater"},"content":{"rendered":"<div><div><div><div>KEY POINTS<\/div><\/div><div><ul><li>U.S. short sales peaked after the Great Recession.<\/li><li>But short sales nationwide have been rising again since 2023.<\/li><li>Ten \u201chot spots\u201d where home sellers are underwater identified.<\/li><\/ul><div><\/div><p>When the global economy all but collapsed nearly two decades ago, many Americans soon found themselves forced to sell their homes for less than they owed on their mortgage to avoid foreclosure. <\/p><p>Read more <a href=\"https:\/\/americanmovershub.com\/?p=3782\">\u2018Jeopardy!\u2019 has a new super-champion (again). Can you answer 16 clues he\u2019s missed?<\/a><\/p><p>The number of what\u2019s known as short sales jumped when the Great Recession hit in 2008 and continued to climb, finally peaking in 2012 when the transaction made up 9% of the nation\u2019s housing market, according to Realtor.com.<\/p><p>A new report by the National Association of Realtors website found that in 2025, the share of short sales represented 0.6% of all conventional closings and 28% of distressed home sales, with fewer than 30,000 total.<\/p><p>But short sales have been increasing recently, rising 4% from 2023 to 2024, and 10% between 2024 and 2025, the site said, noting that in the past four months, those transactions went up 16%.<\/p><p>\u201cToday, short sales are a small corner of the market, but a growing one,\u201d Glen Morgenstern, a Realtor.com economist intern and author of the report, said, part of what he called a broader rise in all types of distressed sales now that COVID-19 pandemic assistance is gone.<\/p><p>The report identified the 10 midsized and mid-priced U.S. housing markets with the highest concentration of short-sale homes for sale in May. Here are the markets labeled the nation\u2019s \u201cShort Sale Hot Spots\u201d with the percentage of short sale listings.<\/p><ul><li>Lakeland, Florida, 6.7% <\/li><li>Colorado Springs, Colorado, 5.8%<\/li><li>Putnam, Connecticut, 5.6%<\/li><li>Pueblo, Colorado, 5.2%<\/li><li>Vallejo, California, 4.5%<\/li><li>Shelton, Wyoming, 4.1%<\/li><li>Olympia, Washington, 3.9%<\/li><li>Yuba City, California, 3.8%<\/li><li>Waterbury, Connecticut, 3.7%<\/li><li>Battle Creek, Michigan, 3.6%<\/li><\/ul><p>What the markets have in common is a rapid rise in prices after 2020 amid the nation\u2019s pandemic home buying frenzy, and then a decline in demand as inventories soared. In Lakeland, the number of homes for sale shot up 60% over three years.<\/p><p>Read more <a href=\"https:\/\/americanmovershub.com\/?p=3781\">Wolverine Nation welcomes its next president: Utah native Jon Anderson<\/a><\/p><p>With prices remaining stagnant or even dropping, \u201cthat is enough to leave owners who bought near the peak owing more than the home is now worth, the precondition for a short sale,\u201d Morgenstern said.<\/p><p>The hot spots highlights all \u201cskew toward short sales, not just distress in general,\u201d he said. \u201cIn May, Lakeland had about three and a half short sales for every foreclosure listing, Pueblo roughly six to one, and Putnam, a small market, had eight short-sale listings and no foreclosures at all.\u201d<\/p><p>Brian Stephens, a Lakeland real estate agent, told Realtor.com that home prices in the Central Florida city have stalled over the past two years even as insurance rates and homeowners fees in the state are going up much faster than other parts of the country. <\/p><p>About one out of every seven homes for sale in the U.S. is in Florida, according to recent analysis by Parcl Labs that also found nearly 45% of listings in that state have taken a price cut, with 1 in 10 homes selling for less than the owner paid.<\/p><p>In Lakeland, homeowners who bought in 2021 through 2023 account for \u201cmost of the people in trouble,\u201d Stephens said. <\/p><p>\u201cThey overpaid for their homes,\u201d he said, \u201cbecause there were multiple offers flying around, buyers waiving appraisals, and a frenzy of buyers grabbing the low interest rates that were offered at the time.\u201d<\/p><p>Read more <a href=\"https:\/\/americanmovershub.com\/?p=3779\">Russia, China dispute newly released documents showing U.S. election interference<\/a><\/p><\/div><div><\/div><div><div><div>Join the Conversation<\/div><\/div><div><\/div><\/div><div><div>Looking for comments?<\/div><div>Find comments in their new home! Click the buttons at the top or within the article to view them \u2014 or use the button below for quick access.<\/div><button>VIEW COMMENTS<\/button><\/div><div><div><button>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"18\" height=\"17\" alt=\"close\" class=\"wp-image-783\" src=\"https:\/\/americanmovershub.com\/wp-content\/uploads\/2026\/05\/504a71651714d85af663ed15a2e68144.webp\"\/><\/figure>\n<\/button><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Number of transactions where sellers get less than they owe on their homes increasing<\/p>\n","protected":false},"author":1,"featured_media":3783,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-3784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-utah"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Short sales spiked during the Great Recession. 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