Why I don’t believe you have to worry about forbearance rates or a crash.
Should you be worried about the number of foreclosures? A lot of headlines are saying you should be, but we have no reason to panic! The last time our market truly had to worry about mass foreclosures was in 2008 when the housing market crashed, and we aren’t anywhere near that sort of market. The housing market today is completely different, and I say that for three reasons.
First, since prices have increased so much recently, people have more equity. This will give homeowners a cushion if they have to go into forbearance. Second, lending requirements are significantly different. Back then, just about anyone could get a loan, but now things are much more secure.
Third, supply and demand are evening out. Yes, demand has decreased recently because of rising interest rates, but it is still outweighing inventory. On top of that, millennials are the biggest buying population since the baby boomer generation.
I do not believe we will see a crash again like in 2008, mainly because the data doesn’t line up. Overall, our market is just normalizing, not crashing, so you can stop worrying about the foreclosure headlines. If you have any concerns or questions about the housing market, I’m always just a phone call or email away! I hope to hear from you.
