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Will We See a Wave of Foreclosures?

Why foreclosures are on the rise and how that may affect our market.

Are foreclosures on the rise, and how will this affect our market? Will we see a tsunami of distressed properties like we did in 2008? Most likely not, but foreclosures are on the rise. Why is that? 

Government stimulus, low interest rates, and pent-up housing demand created a bull market over the last few years. However, there were also government moratoriums that prevented distressed homes from hitting the market for several years. Those programs protected a lot of people who needed help during the pandemic, but now many of those foreclosures are starting to go up for sale.

Think about that for a moment. We went from having almost no foreclosures to seeing a few. It could be alarming to see the steep increase, but in context, this spike is just things returning to normal.

Is this bad? If you’re losing your home, yeah, it’s bad. However, foreclosures are helping alleviate our inventory shortage. If you were trying to buy a home a couple of months ago, it may have been very frustrating because of how homes were for sale. With more foreclosures hitting the market, you’ll see a slight dip in prices and more options to choose from.

“We’re returning to a normal amount of foreclosures.”

A lot of times, investors will grab those foreclosures, fix them up, and sell the now renovated home again. Of course, you also might decide to buy a fixer-upper yourself. 

If you or someone you know wants to take advantage of the homes coming on the market, you can go to our site and search for foreclosures. If you’d like a more detailed list, text us at (248) 905-1402 with “foreclosure list” and the city you want. 

Of course, if you have any real estate questions, we’d love to help. Just call or email us.

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