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I have been greatly surprised by home prices since the start of the start of the pandemic. Back then I thought for sure prices were going to drop. Right now I a
by frankbreetz 6y ago
I have been greatly surprised by home prices since the start of the start of the pandemic. Back then I thought for sure prices were going to drop. Right now I am thinking home prices haven't dropped because of combination of mortgage forbearance and the quick drop of interest rates.
I do wonder what the effect will be when the mortgage forbearance runs out. I would imagine there would be a backlog of delinquencies that would flood the market.
- acituan 6y agoIndeed foreclosures are the lowest in 15 years because “as the federal government has banned lenders from pursuing most delinquent loans until at least the end of August 2020” [1] [1] https://www.worldpropertyjournal.com/real-estate-news/united-states/irvine/real-estate-news-2020-foreclosure-filings-report-coronavirus-impact-on-home-foreclosures-in-2020-attom-data-solutions-foreclosure-reports-ohan-antebian-12055.php https://www.worldpropertyjournal.com/real-estate-news/united...
- scrumbledober 6y agoThis is the biggest factor. It will be very interesting to see what happens starting next month if the ban is not extended.
- Spooky23 6y agoThe market is flooded with capital. In my area you can get a 95% LTV 10/1 ARM for 2.75%. I don’t know when the bubble pops, it’s obvious that the markets are being propped up.
- TheGrassyKnoll 6y agoExactly. The government has spend ~$3 trillion on virus relief. Most of that ends up in the hands of wealthy people and thus the pumped stock market and pumped real estate. (and the rich get richer of course)
- ericd 6y agoEven in the GFC, it took years for real estate values to bottom out. Foreclosures, etc take a long time.