There are many questions regarding the real estate market as we head into 2022.
First, Foreclosures Are Spiking Today
There are a number of headlines circulating that call out the rising foreclosures in today’s real estate market. Those stories focus on the current volume of foreclosures compared to 2020. We’re seeing far more foreclosures this year compared to last because of the forbearance plan. Homeowners who have been impacted by the pandemic are not generally the ones being burdened right now. That’s because the forbearance program has worked. Foreclosure activity continues to increase but it’s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties, or loans in foreclosure prior to the pandemic.
Second, Rising Mortgage Rates Will Slow the Housing Market
Some people are expressing concern that rising rates will negatively impact the housing market by causing home sales to dramatically decline.
We see that over 2 decades a rise in rates didn’t cause prices to depreciate. Outside of the years following the crash, prices continued to appreciate, just at a slower rate.
There’s a lot of misinformation out there. If you want the best advice on what’s happening in the current housing market, contact your local real estate agent.
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If you’re a homeowner, your net worth got a big boost over the past several years due to rapidly rising home prices. You probably accumulated decent amount of equity on your house.