My forecast for foreclosures and how they might help the 2023 market.
Foreclosures have been a topic of concern among homebuyers and real estate investors. With the housing market’s recent boom and the end of foreclosure moratoriums, many are wondering if we will see a repeat of the 2008 real estate market crash. To help clear this up, today I’m exploring how foreclosures are expected to affect the market this year.
First, it’s important to note that while foreclosures will increase in the coming year, it’s not a cause for alarm. The combination of governmental support, low interest rates, and eager homebuyers means that the market is well-equipped to handle this increase. While there will be a spike in foreclosures due to the minimal number of foreclosures in the last few years, everything is expected to return to normal levels soon.
“While foreclosures will increase in the coming year, it’s not a cause for alarm.”
The large percentage increases that we’re seeing may seem alarming, but it’s essential to view them in context. The spike is momentary and will not cause any long-term damage to the market. In contrast, foreclosures can elevate a historically-tight housing market. Currently, there are only 1.37 million units available for sale, which is the lowest inventory level on record. Frustrated buyers will eventually have more properties to choose from as foreclosures add to the inventory and create more opportunities.
While foreclosures are never positive, they can help balance out the market by adding more properties for buyers to choose from. Therefore, this sudden rise isn’t a cause for concern, but rather an opportunity for people looking to invest in real estate.
If you’re considering purchasing a home, the increase in foreclosures may provide you with more options to choose from. Also, if you’re an investor, it may be a good time to invest in distressed properties. If you have any questions or concerns, feel free to contact me by phone call or email. I look forward to hearing from you!