The pre-foreclosure market segment also has cross-currents and multiple dimensions as noted in my Q3 2020 Market Report . Misinformation from forbearance reporting errors adds to the increase in delinquencies. Although this spike cannot be ignored, it may not be what it seems.
Mortgage crisis vs. COVID
News and analysts typically dismiss the increase in pre-foreclosures as not being the same as the mortgage crisis, citing the strong possibility of forbearances being extended into 2021.
Will forbearances be extended? Most likely. That may only postpone foreclosures if home owners remain in financial difficulty and are unable to bring their mortgage current.
The distressed property market today is not like 2009. An abundance of forbearances is indeed a different scenario than bad loans. However, a different cause doesn’t negate the results. Much hinges on our economic recovery, and home owners ability to convert their forbearance into a loan deferral.
Like other market segments, there are many layers to this “story” and it’s a trend we need to watch.
How’s the real estate market?
A quote I heard years ago applies now more than ever;
“Asking how’s the real estate market from a national perspective is like asking what’s the temperature in America”
There is technically a temperature for the United States, if you average all the temperatures across the country. However, that won’t help you plan your day or know if you need snow boots or an umbrella.
Similarly, if you ask me how’s the real estate market in the greater Philadelphia area, the answer is “it’s complicated.”
As I reported 10 years ago from Kauai’s luxury second home market, it’s a bit like quantum physics. Multiple realties for various market segments. At this point in time in the Philadelphia area, that’s especially true.
Although real estate shifts are normal, this is a very dynamic time, unlike any other real estate market shift we’ve experienced. The question that’s most important is how to best navigate these changing currents for your success.
What’s the future look like?
Both negative and positive Q3 shifts can be attributed to the impact of COVID and political unrest. What can we expect for the coming months?
No one has a crystal ball to predict the future or how sustainable these trends may be. Even the exodus of New Yorkers to large suburban homes may shift to more of a cosmopolitan lifestyle in Center City communities like Queen Village where you have the best of suburban and urban living.
What are your real estate goals?
What’s most important is how we can maximize on current trends to meet your particular short-term and long-term real estate goals.
I’m passionate about supporting my clients with information and concierge, VIP support. As detailed as these market reports are – nothing compares to a personalized analysis for your particular goals.
Let’s talk! Please book a call or Zoom chat on my calendar or feel free to comment below. Your information will remain confidential.