When the pandemic hit, many experts feared the housing market would tumble as job losses lead to delinquencies, lead to foreclosure, etc. But the government stepped in to stave off this crisis with federal (and state) moratoriums and in the interim, we had tremendous market growth locally and nationally.
So what’s next as the debts become due? Libertina Brandt from Inman provides a forecast that resonates - last year’s pandemic market growth may “save the day” for the indebted, provide needed inventory, and stabilize the market overall.
The following excerpts are directly quoted from Libertina Brandt's article titled "End of foreclosure moratorium could help ease strain on inventory". Check out the full Inman article here.
Consistent home price growth throughout the pandemic has created a ton of equity for homeowners across the country.
A year ago there was a lot of concern that the pandemic would trigger an onslaught of distressed sales and foreclosures, Frank Nothaft, chief economist for CoreLogic, told Inman. But now, that seems unlikely.
The National Association of Realtors (NAR) found that the median existing-home price in the U.S. hit $363,300 in June, the highest on record and the 112th month straight of year-over-year home price gains.
This newfound equity will allow some facing the possibility of foreclosure to instead list their home and use the sale price to pay off their debt.
For struggling homeowners exiting the forbearance period with strong home equity, they’ll have the ability to list their homes and, in theory, provide some inventory in the near term. There will also inevitably be foreclosures...
Do you have any real estate goals you want to achieve this year? Whether you're looking to buy or sell soon, we'd be happy to help discuss your options so you're prepared before the projected inventory bump. Email us at info@jenniferandkris.com or connect with us on social media (Facebook, Instagram, and LinkedIn).
All the best,
Sources:
Libertina Brandt. "End of foreclosure moratorium could help ease strain on inventory". Inman, 2 Aug. 2021, https://www.inman.com/2021/08/02/end-of-foreclosure-moratorium-could-help-ease-strain-on-inventory/. Accessed 10 Aug. 2021.