If you’ve been keeping up with recent headlines, you might have noticed a rising concern over an increase in foreclosures in the housing market. This kind of news can understandably trigger alarm, especially for anyone who experienced the 2008 housing crash. However, it’s crucial to delve into the facts rather than getting caught up in sensational headlines.
Let’s set the record straight: despite a slight uptick in foreclosure numbers, we are nowhere near a crisis level. The recent figures are climbing from what were historically low numbers, greatly influenced by temporary moratoriums and forbearance programs during 2020 and 2021. These programs were essential in helping homeowners stay afloat during the pandemic, but with their conclusion, a mild increase in foreclosures was expected.
Comparing today’s situation with the data from 2008 paints a clear picture. Data from ATTOM indicates that foreclosure activities have remained significantly lower post-2008 crash. For example, while foreclosures once topped over a million annually, the numbers for 2023 hover around 357,000.
Moreover, most homeowners today have built substantial equity, buffering them from the risk of foreclosure. This equity buildup acts as a safety net, which was absent for many during the 2008 crisis.
In essence, the current increase in foreclosures is a return to normalcy rather than an alarm bell. The market dynamics today are vastly different, supported by stronger lending standards and healthier household finances.
Bottom Line: The housing market is experiencing an expected correction in foreclosure activities, not a crisis. Understanding the broader context is key to navigating today’s real estate landscape effectively.
Curious about your home’s value in today’s market? Visit HomeValuePro.com. Have questions? Please text/call me at 916-508-5353 or email me at [email protected]. I’m always happy to help.