As the housing market continues to evolve in 2025, one question is starting to bubble up for both buyers and sellers alike in Rhode Island:
Are we about to see a wave of foreclosures like we did in the past?

The short answer: not yet—but there are signs to watch.

At The Slocum Home Team, we’ve been closely tracking both national trends and local developments to help you make smart, informed decisions—whether you’re buying a home in Warwick, selling in East Greenwich, or investing in Providence real estate. Here’s what we’re seeing, and what it means for you.

Foreclosures Are Rising—but Still Below Normal

Foreclosure activity across the country has climbed by about 40% over the past year. That might sound alarming, but it’s important to understand the full picture.

Even with that increase, we’re still seeing fewer foreclosures than we did in the years just before the pandemic. In 2025, foreclosure filings remain lower than they were in 2019. That said, we are moving back toward a more typical market—especially now that pandemic-era protections like forbearance programs and foreclosure moratoriums have ended.

Here in Rhode Island, we’re not seeing a flood of distressed listings. But we are keeping a close eye on key indicators that tend to rise before foreclosure rates go up.

Mortgage Delinquencies: The First Sign of Trouble

One of the most reliable early indicators of foreclosure activity is mortgage delinquency. Here’s what we know:

• Homeowners falling behind by 30+ days is now back to pre-pandemic levels.

• More seriously, delinquencies over 90 days are beginning to inch upward—but they’re still lower than normal.

That means some households are beginning to struggle, but it hasn’t turned into widespread distress. For now, Rhode Island remains stable. Most homeowners have built up strong equity over the last several years thanks to rising home prices, giving them options even if financial hardship hits.

Student Loan Payments Are Back—and Causing Credit Issues

In 2025, many borrowers are facing another financial pressure point: the return of student loan payments. After several years of deferment, these payments are back—and delinquencies are rising.

This is especially important for younger or first-time homebuyers in Rhode Island. Missed payments can dramatically drop credit scores, making it harder to qualify for a mortgage or secure a good interest rate. Some potential buyers may get priced out of the market or need to delay their purchase plans altogether.

Who Might Be at Risk in Rhode Island?

While the broader market is still strong, we’re monitoring a few segments that could see more challenges ahead:

• VA Loan Borrowers: With federal protections ending, these homeowners could face increased risk if they fall behind.

• Landlords with High Vacancy: Investors in urban markets like Providence and Pawtucket could face income issues if demand softens.

• Recent Buyers with Low Down Payments: Those who purchased at or near peak pricing with minimal equity could be vulnerable if job loss or financial setbacks occur.

But Let’s Be Clear: This Is Not 2008

Rhode Island’s housing market is not crashing. In fact, many local communities—including Warwick, Cranston, and Coventry—are seeing strong demand, limited inventory, and continued price appreciation.

Most sellers still have leverage. Homes are selling quickly. And the equity built up over the last several years gives homeowners more options than ever before.

This isn’t a distressed market. It’s a normalizing one—and that’s not a bad thing.

For Buyers: Stay Focused, Get Prepared

If you’re buying a home in 2025, don’t wait for a “foreclosure sale” bonanza that may never come. Instead:

• Get pre-approved with a local lender.

• Strengthen your credit by staying current on all payments, especially student loans.

• Work with a local Realtor who can help you identify motivated sellers—not just distressed ones.

Some buyers are hoping for deals that won’t materialize. The best properties are still competitive. Having the right strategy—and a local expert—matters more than ever.

For Sellers: Equity = Opportunity

Thinking of selling? Now might be the right time to act.

• You likely have substantial home equity.

• Demand remains high in many parts of Rhode Island.

• A strong pricing and marketing strategy can help you maximize value and move quickly.

If you’re experiencing financial difficulty, don’t wait until it’s too late. A proactive sale is almost always better than foreclosure—and can often leave you with cash in hand to move forward.

Bottom Line: Stay Informed, Not Alarmed

Yes, foreclosure activity is ticking upward nationally. But locally, the Rhode Island housing market is on solid ground.

At The Slocum Home Team, we’re here to help you navigate changing conditions with confidence. Whether you're buying, selling, or just trying to make sense of what’s happening, we’ll guide you every step of the way.

Have Questions About the Market?

Reach out to Nick Slocum or one of The Slocum Home Team’s top agents. Let’s talk about your goals and how we can help you succeed—no matter what the market does next.