According to current data, the majority of homeowners are either fully caught up on payments or have a plan from the bank to modify their loan so that they may start making payments again.
The majority of homeowners have sufficient equity to sell their homes
The average homeowner has accumulated unprecedented levels of equity in their home. Many people who are leaving the forbearance program without a plan will have enough equity in their homes to sell.
In the last two years, there have been fewer foreclosures
Today, there are fewer foreclosures than there were before the pandemic. Homeowners were given an extra two years to get their finances in shape and work out a plan with their lender under the scheme. This helped to avoid the forelosures that would have otherwise hit the market.
New listings are easily absorbed by the current market
When foreclosures flooded the market in 2008, they added to the glut of homes already on the market. The housing market is extremely undersupplied today, with a supply of 2.0 months. A balanced market would have enough inventory to last six months.
If you see stories today concerning the rising number of foreclosures, keep in mind that context is crucial. Foreclosures are still significantly below levels seen before the outbreak. Contact a real estate agent for assistance in understanding current market circumstances.
