Let’s talk about foreclosures in 2024…
Now that pandemic relief programs are starting to phase out and the economy is changing, some are thinking that foreclosures are going to go way up and have an effect on the overall real estate market.
But that’s not what we’re seeing on the market. Right now, in 2024, we’re at only 60% of pre-pandemic foreclosure levels.
In fact, experts have shared that we aren’t likely to see 2019 levels of foreclosures until mid to late 2024. Other experts think that we’re still likely to remain around 2023 levels for a while longer.
In 2023, we did see an increase in the number of foreclosures due to those relief programs ending. Rather than a sign of market instability, this is seen as a market correction.
Why aren’t foreclosures increasing dramatically? We’re in a strong economy where homeowners who bought in 2020-22 built a LOT of equity in their homes thanks to the power of appreciation.
This level of homeowner equity decreased the overall likelihood of foreclosures and continues to signal a strong real estate market.
