Foreclosures were a dime a dozen after the market crash in 2007. It’s a completely different story today.
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A few years back, foreclosures were a popular option for homebuyers, simply because there were so many of them. Although this was the case back in 2007 and 2010, it’s not the same story today.
Here, you can see a chart from CoreLogic that shows the total number of foreclosures between 2007 and 2016 broken down nationally and by state. The chart shows the number of foreclosures in thousands, so we actually saw 7.8 million total foreclosures during this time period.
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We will stay on top of the data in case anything changes.
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With interest rates about to rise, should there be worry of foreclosures coming back in a big way? The answer is no. Although foreclosures skyrocketed between 2007 and 2010, they have been falling steadily since. There are more loan modifications being done, and the types of mortgages being secured by buyers today are much more stable and secure than the adjustable-prime rate mortgages we saw just before the market crash.
We will stay on top of the data, as always, but we don’t think foreclosures will be quite so important in the market as they were a few years back. It shouldn’t be of much concern to you.
According to the Chief Economist of CoreLogic, Dr. Frank Nothaft, we can’t ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership. In our opinion, the economy is much different than it was in 2008. It’s an economy that is conducive to more homeownership, not less.
If you have any questions, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.
