2020 Market Update
Updated: Dec 10, 2020
People are constantly asking us how the Real Estate market is doing and we’re here to tell you that it ROCKS!
Fun Fact: This is the Best Time to Buy and Sell; Buyer’s get Low Interest Rates, Seller’s get Top Dollar and Save on Real Estate Fees!
The market is strong largely due to the interest rates being at ALL TIME LOWS ↓ and the fact that people can buy up to 31.6% more house in today’s market! In addition to the rates, people’s needs have changed largely due to the pandemic, they need more rooms, they want a pool, how they live and work at home has changed.
Apparently many people are hearing about a Foreclosure/Forbearance Crisis. As you know, everyone is going through difficult times right now with COVID restrictions, working from home, or job loss. The news has reported that there may be a crisis afoot with a ton of foreclosures flooding the housing market and affecting prices. However, this is just not the case.
Back in 2009 there was a spike of foreclosures that went up to 566,180 homes and the yearly average (going back 20 years) is 206,000. Did you know that there are currently only 23,900 homes in America in foreclosure? This drop is largely due to the moratorium on foreclosures, but this number would have to increase by 8.5 times to even reach the average of 206,000! There is no reason to be scared of a potential foreclosure crisis as the numbers simply don’t work.
Fun Fact: 138 Million People own homes in the U.S.; 42.1% have NO Mortgage, and most have some sort of Positive EQUITY in their Homes.
Now, let’s talk about forbearance. Did you know that the initial forecast for loans using forbearance was 30%? The reality is that at its worst, only 8.6% of homes asked for forbearance. Current data shows that number has dropped to 5.67%. If you look at all the homes in America that are owned, only 42% of those are owned outright. Therefore, the 5.67% is NOT out of 100% of the homes, it is a fraction of that. The current number of homes in forbearance is dramatically decreasing.
Fun Fact: Headlines do more to Terrify than Clarify!
The Real Estate market is going strong. We may not have a crystal ball but from all the statistics and information we’re seeing the market will continue to be strong for the foreseeable future. This means that now is the perfect time to Buy or Sell with the Audra O’Neal Team!
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