Bank-Owned Properties Rise 25.7% Year-Over-Year—What This REO Surge Means For Real Estate Investors

BiggerPockets Blog
Published: December 26, 2025
Pricing & Profitability

Summary

Bank-owned properties (REOs) are surging, reflecting the end of the foreclosure cycle. This creates opportunities for investors, including those using tax-advantaged retirement accounts, to acquire properties below market value. Hosts, particularly those in areas with rising REOs like Texas and Florida, can use this data to identify markets for potential acquisitions and build their real estate portfolios.

Key Insights

  • Texas delivered the biggest REO spike of any major state— both month over month and year over year.
  • The U.S. recorded 3,884 REOs in November 2025, down 0.15% month over month, but up 25.74% year over year.

Action Items

  • Identify markets where REO inventory is increasing to find more distressed listings, increase your negotiation leverage, and expand buying opportunities.
    Effort: medium
    Impact: medium
  • Target counties with rapid Start > NOS > REO progression for BRRRR, fix-and-flip, or rental acquisitions.
    Effort: medium
    Impact: medium

Tools & Resources

  • Equity Trust Company: To learn how to invest in real estate using a Self-Directed IRA or Solo 401(k) , visit: www.TrustETC.com/RealEstate(www.TrustETC.com/RealEstate)

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