Are foreclosures on the rise? The short answer is yes. They are. But before anyone panics let’s unpack the facts.
In 2019 over 600,000 US properties had foreclosure filings*. Interestingly 2019 was considered to possess a strong economy with strong optimism for the economic outlook.
Between 2020 and 2022 foreclosure filings dropped to 214,323 and 151,153 respectively due to the moratorium placed on foreclosures in response to the surge of job losses caused by the COVID-19 pandemic.
The moratorium came to an end in 2021. By early 2022 we saw a rise in foreclosure filings to about 325,000. Not surprising since thousands of foreclosures had been put on hold since 2020. Experts predict that the number of filings will rise in 2023 but will not surpass the levels of 2019 and will not be close to the tsunami of foreclosures experienced between 2008 – 2010.
What’s the takeaway? Looking at the numbers foreclosure filings appear consistent with a normally functioning economy. What the news call a rise some analyst are calling a return to norms that were held back by extraordinary measures put in place at an extraordinary time.
The bottom line:
- There is no indication at present that property values will be negatively impacted by a wave of foreclosures in our local market.
- The decision to buy or sell in any market must be based on the realities of the individual’s circumstances and the outlook of the market local to you.
Headlines have a job to do, which is to get attention. Run the numbers, analyze the data, and of course talk to a real estate professional. Make the best decision for you and your family.
*Data provided by ATTOM
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