Wondering why foreclosures seem to have disappeared? Let me break down why they’re gone and what this means for today’s housing market. This topic is top of mind for many homeowners, investors, and buyers, so let’s dive in.
I’m Terry Tucker with eXp Realty and I’m here to guide you through the key insights into this phenomenon.
To understand today’s market, let’s first look back a few years . . . Most of us remember the 2008 financial crisis when the market was flooded with foreclosures, causing home prices to plummet. This was largely due to risky subprime mortgages given to borrowers with poor credit histories. These loans often had adjustable rates and were fully financed, meaning no upfront cash from borrowers and 100% financing from banks. When these rates adjusted to higher payments, many homeowners couldn’t keep up, leading to widespread foreclosures and homeowners owing more than their homes were worth. So, how is today’s market different from 2008? Well, first off there are much stricter Lending Standards. Unlike 2008, subprime 100% fully financed loans are largely a thing of the past. Lenders have significantly tightened borrowing guidelines, making it harder to get risky loans. In addition, many homeowners today have built up significant equity in their homes, providing a cushion. In cases of financial hardship, this equity allows homeowners to sell rather than face foreclosure, helping them avoid a similar crisis.
We also have to look at some other key reasons for a strong market. Steady home prices and a strong demand from buyers, coupled with low inventory, very few new homes being built and home prices continuing to rise steadily, the real estate market has been on an unprecedented bull run! While the market has cooled since early 2022, these factors keep the risk of a foreclosure wave at bay. Today’s market data clearly shows we’re far from a foreclosure crisis, and homeowners are in a much stronger financial condition than in 2008, in large part to that equity.
If you would like more information on East Bay real estate data, prices, and trends, call me today, and let’s talk about it! I’m a seasoned East Bay expert with a 5-star rating. I’ll help you navigate the market and make it happen, whether that’s selling or buying or both!
And if you or someone you know needs to sell a home, ask me about my home-selling plans.. I took the pain out of negotiating with a Realtor and made it SUPER simple. Really! Choose Silver, Gold, or Platinum- Pick your Plan and Pick your Price. Terms do apply. I’m Terry and I sell homes. Let’s get you going, Call me today!
