{"id":9782,"date":"2024-01-31T06:30:00","date_gmt":"2024-01-31T11:30:00","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=9782"},"modified":"2024-01-31T06:30:00","modified_gmt":"2024-01-31T11:30:00","slug":"foreclosure-activity-is-still-lower-than-the-norm","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=9782","title":{"rendered":"Foreclosure Activity Is Still Lower than the Norm"},"content":{"rendered":"
\"Foreclosure<\/p>\n

Have you seen headlines talking about the increase in foreclosures in today\u2019s housing market<\/a>? If so, they may leave you feeling a bit uneasy about what\u2019s ahead<\/a>. But remember, these clickbait titles don\u2019t always give you the full story.<\/p>\n

The truth is, if you compare the current numbers with what usually happens in the market, you\u2019ll see there\u2019s no need to worry.<\/p>\n

Putting the Headlines into Perspective<\/strong><\/h4>\n

The increase the media is calling attention to is misleading. That\u2019s because they\u2019re only comparing the most recent numbers to a time where foreclosures were at historic lows. And that\u2019s making it sound like a bigger deal than it is.<\/p>\n

In 2020 and 2021, the moratorium and forbearance program helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period.<\/p>\n

When the moratorium came to an end, there was an expected rise in foreclosures.\u00a0But just because foreclosures are up doesn\u2019t mean the housing market<\/a> is in trouble.<\/p>\n

Historical Data Shows There Isn\u2019t a Wave of Foreclosures<\/strong><\/h4>\n

Instead of comparing today\u2019s numbers with the last few abnormal years, it\u2019s better to compare to long-term trends \u2013 specifically to the housing crash \u2013 since that\u2019s what people worry may happen again.<\/p>\n

Take a look at the graph below. It uses foreclosure data<\/a> from ATTOM<\/em>, a property data provider, to show foreclosure activity has been consistently lower (shown in orange)<\/em> since the crash in 2008 (shown in red<\/em>):<\/p>\n

<\/a><\/p>\n

<\/p>\n

So, while foreclosure filings are up in the latest report, it\u2019s clear this is nothing like it was back then.<\/strong><\/p>\n

In fact, we\u2019re not even back at the levels we\u2019d see in more normal years, like 2019. As Rick Sharga, Founder and CEO of the CJ Patrick Company<\/em>, explains<\/a>:<\/p>\n

\u201c<\/em>Foreclosure activity is still only at about 60% of pre-pandemic levels<\/em><\/strong>. . .\u201d<\/em><\/p><\/blockquote>\n

That\u2019s largely because buyers today are more qualified and less likely to default on their loans. Delinquency rates are still low and most homeowners have enough equity<\/a> to keep them from going into foreclosure. As Molly Boesel, Principal Economist at CoreLogic, <\/em>says<\/a>:<\/p>\n

\u201cU.S. mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low\u2026 <\/em>borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans.\u201d<\/em><\/strong><\/p><\/blockquote>\n

The reality is, while increasing, the data shows a foreclosure crisis is not where the market is today, or where it\u2019s headed.<\/strong><\/p>\n

Bottom Line<\/h3>\n

Even though the housing market is experiencing an expected rise in foreclosures, it\u2019s nowhere near the crisis levels seen when the housing bubble burst. If you have questions about what you\u2019re hearing or reading about the housing market, connect with a real estate agent.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\"Foreclosure<\/p>\n

Have you seen headlines talking about the increase in foreclosures in today\u2019s housing market?<\/p>\n<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,10,86],"tags":[],"class_list":["post-9782","post","type-post","status-publish","format-standard","hentry","category-blog","category-foreclosures","category-housing-market-updates"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/9782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9782"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/9782\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}