To say real estate in 2021 has been wild is an understatement. Many are speculating what may happen with post-pandemic returns to normalcy, and how it will affect real estate home values and foreclosures. This fact is causing many sources to write articles that may have click-bait headlines and the true facts of the matter lay hidden deep in the article. It's always important to carefully read the information in the article and not draw conclusions on the headline alone.
Check out this article from NextHome's Chief Strategy Officer, Keith Robinson at the link below for more details on this topic: https://www.nexthome.com/2021/10/october-economic-update/
The three major takeaways are below!
1. Foreclosures ARE going up, but keep in mind there was a moratorium on foreclosures due to the pandemic - they really have nowhere to go but up.
2. Home equity plays a big part in foreclosures - and with the history of recent market activity, nearly all homes have some equity right now.
3. As foreclosures increase, remember that buying a foreclosure does not always mean it's cheap. The banks are trying to get as much of their investment back as well.