- Hello friends,
it's Mario Romero
with the Melcher Agency.
And thank you for joining me.
Today we will be discussing why
the foreclosure would crush
the housing market next year.
(Upbeat music)
I know a lot of people are
really concerned about it,
and especially when you read the media
and what's going on
with the job situation, pandemic.
So, here it goes.
Because what I've been
telling other clients that
are local and deaf,
so I hope you understand
to give my opinion I pulled some stats.
So here's what I think,
with a strain of
the current housing
market growing every day,
and it is and more
American returning to work.
We're having a faster
than expected recovery
in the housing sector,
and it's going full blown
acne already underway.
But many are still
asking the question, well,
we see a wave of foreclosures as a result
of the current crisis.
Well thankfully, research shows
a number foreclosures is expected
to be much lower than what
this country experienced
during the last recession.
And according to Black
Knight as the number of those
in active forbearance
has been leveling off
over the past month,
of the original 4,208,000 families,
that were granted forbearance,
only 2,000,588 of these homeowners
got an extension.
So people are going through and
making their payments again,
they started again to pay their mortgages,
they've paid off their homes,
or never went delinquent under payments
in the first place.
They may have applied for
parents out of precaution,
but a lot never fully act on it.
The housing market and
homeowners are in much,
much better position than many may think.
Much of that has to do with the fact that
today's homeowners have more equity
than most people realize.
According to John Burns Company,
over 42% of homes are owned free
and clear, 42%
This means they are not tied to a mortgage
of the remaining 58%.
The average homeowner had
about 177,000 in equity.
And that number is keeping
many homeowners afloat today
and giving and giving them options
to avoid foreclosure.
Well, Adam data solution
indicates that there
is a potential for a
number of foreclosures
to increase throughout the country.
It's important to understand
why they won't rock the housing
market this time around.
Today's actual quarterly
active foreclosure number
is 74,860.
That is over seven times seven
and a half times lower than the number
of foreclosure the country saw at the peak
of the housing crash in 2009.
It's clear that even if the number
of quarterly foreclosures today doubles,
they're the positive ability,
not a given,
they will only reach what
historically speaking
is a normalized range,
far below what ended up
the housing market roughly 10 years ago.
Equity growing, jobs are
returning and the economy
is slowly recovering.
So the perfect storm where
a wave of foreclosures
is not realistically in the
housing market forecast,
what our hearts are out there with anyone
who may end up
in foreclosure etc.
As a result of this crisis.
We do know that homeowners
have more options
than they did 10 years ago.
For some it may mean selling their hawks,
and downsizing without equity,
which is a far better
outcome than foreclosure.
Online homeowners today have many options
to avoid foreclosure
and equity is surely helping
to keep many afloat.
Even if today's rate
of foreclosure doubles.
It will still only hit a mark that is more
in line with exploring a normalized range,
a very good sign for homeowners
and the housing market.
So thanks for joining
us today and let us know
how you are feeling.
We're here for you.
If you have any questions,
whether you're buying or selling,
or just wanting to meet
up for a cup of coffee,
give me a call at 602-252-4191
this is Mario Romero
at the Melcher Agency signing off,
be kind, be safe, stay healthy.
And please keep in touch
with your loved ones.
Go out and make it a terrific day.
