According to a February report from WhiteHouse.gov, there are currently over 10 million homeowners behind on payments and 20% of renters behind on rent…
Forbearance moratoriums were set to end in March, but were extended through June 30th. Also, on May 5th, a federal judge struck down the national eviction moratorium.
These numbers may seem scary, but keep in mind, people go into foreclosure if they owe more than they can sell for. Most homeowners now have lots of equity, owing much less than their home is worth. I doubt we will see a huge “flood” of foreclosures for that reason. Sadly, many people will lose their homes – however it helps that they are able to sell for a profit, rather than sacrifice their credit and walk away with nothing.
There is currently very high demand because of pandemic motivated moves, millennials at the prime age for buying their first home, an uptick in the number of investors and of course, cheap money… This presents good opportunities for many people.
However, the extremely low inventory will not be the case forever (I believe within the next couple years or even sooner it will become balanced)… But, I’ll save my thoughts on that for a video next week.