The Foreclosure Market
Hello everyone Edna Wilson here, your hometown realtor as hometown as apple pie. The sky is falling! The sky is falling! Go and tell the king!! That’s what I’m hearing, even today at lunch I heard the table next to me talking about the foreclosure market. What foreclosure market its March 2021 there’s no foreclosure market. I have to be honest with you it is noting like 2006/2005. Nothing. Everybody’s saying it is but its really not, and here’s why. The proof is in the pudding. We always watch the rental market when were looking for economic moves in the market, because the rental market moves very quickly. That’s because it adjusts very quickly to the comings and goings of the demand on the market. Where the sample side of the market doesn’t adjust so quickly. It’s a little bit bigger ship.
Right now rentals are going like crazy there’s such high demand for rentals high, high, high demand for rentals. That means we have the demand for housing. Therefore our prices keep going up and up. But this whole foreclosure thing it’s a myth. Believe it or not when you compare this time to 2007/2008 the biggest difference is most Americans still have over 30% equity in their home. They’re not walking away from that kind of money. Secondly the market hasn’t turned. We’re not upside down. They can easily sell it if they need to get out
Only 10% of the market did forbearance and out of that 10% half did not need to do forbearance. They continued making payments even after the forbearance. So, you compare that to 2007/2008 it was a much larger number. Much, much larger. So, the average amount of foreclosures we have in America is about 250000 per year. That’s just the average. We take a look at these numbers now we’re right there were not anymore more than normal even with the process that has started.
Now we know that there’s forbearance in place, and that’s going to be a little bit longer, but trust me, we are not in a bubble again. We just aren’t. If you want to have a bigger discussion about that I would love to do that with you.
Again my name is Edna Wilson, your hometown realtor as hometown as apple pie.