Updated: Aug 24
Here’s why you shouldn’t worry about a wave of foreclosures.
As many of you may know, the moratoriums on foreclosures are being lifted in several states. Does this mean we’re in for a big foreclosure boom? No, we’re not. Housing prices have continued to increase since a lot of people went into forbearance. This means even though we’re hearing that not everyone is back at work and able to make those payments, they still have plenty of equity in their homes.
During the last foreclosure boom, people nationwide had about 30% equity in their homes. Right now, the average is about 60%. This means people who go through foreclosure will most likely sell the house on the market rather than giving it back to the bank. On top of this, the banks are being a lot more lenient, allowing a lot more refinances and restructurings.
We’re down 80% to 90% on foreclosures in the Denver area, and while we expect that to come back up a little bit, it’s not going to completely tank. Inventory is still very low, interest rates are still low, and there’s a bullpen of people still looking for properties.
We’re not expected to have a big crash.
A question from one of our viewers was: “I’m thinking about selling my home in the fall. Should we do anything to get the home ready while it’s beautiful outside?” Absolutely! The best thing you can do is contact us.
We’ll go ahead and get the pictures taken now while we can see the views, the flowers are out, and it looks nice outside. That way, in the fall, we can show those pictures to help the buyer visualize what the home looks like in the summer.
If you have any video requests or questions, please send them to us. Feel free to reach out to us directly, especially if you’re thinking about selling your home. We look forward to hearing from you.