There’s no telling what will actually happen, but yes, it is indeed likely that we are looking at the possibility of foreclosures hitting the market next year.
The spread of Covid-19 since 2020 has affected much of our daily lives. Many people have also lost their jobs because many industries were forced to close due to the pandemic. Since livelihoods were affected, some people may find it challenging to pay for their home loans.
Some homebuyers who were planning on purchasing a home may have decided to hold off on their purchases. That’s because they’re probably thinking that they can save a lot of money if they wait for the foreclosures to start hitting the real estate market.
Here’s her forecast on foreclosures in Florida’s real estate market.
Homeowners were given leeway during the pandemic in paying their monthly mortgages. Given that Covid-19 is an unforeseen worldwide event, it’s out of a homeowner’s control if they lost their jobs or livelihood.
Also, foreclosures can take years to finalize. If you’re waiting for foreclosed homes on the market this year, you may probably have to wait a little more. If foreclosures do hit the market because of the effects of the pandemic, you’ll see them at the end of 2022.
“The homeowners who are currently in forbearance do not have to make their next mortgage payment until March of next year. And only after 90 days from then, if they cannot make their mortgage payments, will they receive a notice of foreclosure.”
Homebuyers who expect a situation that’s the same as the housing crisis may be up for disappointment. People will likely have an out. Homeowners can get back on their feet by selling their homes. Some of them may even walk away with 30,000 to 40,000 equity with the way prices are right now.
“It’s not going to be like the housing crisis. And prices are not going to get severely depressed as we saw ten years ago; people will have an out.”
Houses on foreclosures by the end of 2022 may somewhat balance out the current shortage in the Florida housing inventory. The real estate market in Florida is currently experiencing a shortage of homes for sale.
A great demand for Florida properties right now, coupled with a low inventory of houses, mainly drives up home prices. And foreclosures in the future may not be such a bad thing.
“I know everybody sees a foreclosure, and it has a negative stigma. People relate it to a depressed housing market. But it may even correct the current inventory constraints that we’re seeing and balance out the inventory shortage.”
Holding off on your home purchase may not be the smartest move right now. Many homebuyers may not be aware that the interest rates right now are some of the lowest we’ve seen in a while.
With these low-interest rates, there’s no better time than now in purchasing your Florida home. And some of the homes that do end up foreclosed will be selling at slightly below market value. That’s why most lenders encourage homebuyers to start their home buying now.
“So if you decided you were going to wait and see if your crystal ball was a little bit clearer than mine, good luck, you’re going to miss out on all the little mortgage interest rates that are available right now.”
Buying a home is an expensive undertaking. That’s why it’s understandable that most homebuyers would take measures to save as much money as possible. And one way to save money is to look for foreclosed properties. However, foreclosed houses may take a long time to hit the market. Most industry experts advise on purchasing a home now because of the very low-interest rates. And that’s also one way of cutting back on expenses.
Do you have more questions about today’s low-interest rates? We’ll be more than happy to answer your questions. Reach Home Loans has been in the industry for years, and we know what works best for each of our clients. Call us now at 954-703-1465 to get started.
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