Are We Headed for a Housing Crash?
How will foreclosures affect the booming housing market we are all currently enjoying right now?
Stay with me, because today I’m talking about why it may not be what you might be thinking.
I’m Lisa Kelly Lakeland Homes & Lifestyles with Premier Realty. You’ll find me right here every Monday with a New Video to help You make smart decisions when buying or selling a house, so if haven’t already done so, please take a sec and hit the subscribe button. And if you click on the bell too, the good folks at You Tube will let you know when my latest video is available, so you’ll never miss a thing.
Our current housing market is growing everyday with more people returning to work, and consumer confidence rising.
Everyone is prospering right now. Sellers are getting top dollar for their homes and in lightning speed and Buyers are capitalizing on the insanely low interest rates. Except for our low inventory, it’s a perfect world for both buyers and sellers right now.
So why all the talk about the coming recession, and a tidal wave of foreclosures threatening to crash our happy housing market party?
Simply put: Because it’s true...Well half true. We will see a wave of foreclosures. But Nowhere near the numbers that were predicted even two short months ago...Why?
Thankfully, the number of people who originally opted into a forbearance program vs the number of people who were removed from the program is much less than others predicted.
Of the original 4 million plus families granted a forbearance on their mortgage, only about 2,500,000 of these homeowners got an extension. Many homeowners have once again started to pay their mortgages, paid off their homes, or never went delinquent on their payments in the first place.
A lot of it has to do with the fact that today’s homeowners have more equity than most realized. Meaning the difference between what they owe and what the home is worth.
They may have applied for forbearance out of precaution, but never fully acted on it.
This all means we are in better shape than we thought...as far as the potential number of foreclosures that are coming.
Yes, Foreclosures will be coming in 2021. But its important to know they will not crush the housing market...Here’s Why:
Currently there are roughly 75,000 foreclosures. Which in comparison to the housing market collapse 11 years ago, is over 7 and half times lower than the country saw at the peak of the housing crash in 2009.
Even if the current number of foreclosures doubled, we would only be reaching a “normal” range...historically speaking. And FAR below from the crippling housing market crash we saw a decade ago.
My heart is with you, should you end up in foreclosure as a result of this pandemic. The memories of all the families I tried to help during the 2009 era, to save even an ounce of dignity are still deeply etched in my heart.
The good news is, there are a lot more choices for homeowners today. For some, it may mean selling and downsizing with the home's equity.
For more information and money saving tips if you’re considering selling, please download my Free Sellers Guide . You’ll find the link below in the description.
I’m Lisa Kelly Lakeland Homes and Lifestyles with Premier Realty. I hope you found this video helpful and a bit of good news for a change. If you did, give me a thumbs up!
Until then, I’ll see you on the next one.