how to look past the headlines for the truth about the housing market

If you're worried about a wave of foreclosures similar to 2008's housing market crash... you're not alone. But how much do you *really* have to worry about history repeating itself? In this video, Brent dives into the core differences between now and 2008, and why there's reason to be optimistic.

More of a reader? Catch the video transcript below!

Today, we’re going to talk about foreclosures.

We’ve been seeing a lot of news headlines about all these foreclosures coming to market and that there’s going to be a bubble that burst like last time.

First, let’s consider that news headlines are there to get you emotional and encourage you to click. At the end of the day, it’s just gossip. 

The fact of the matter is: buyers last year, because of the pandemic, were allowed to press pause on their payments by entering forbearance. Now, most of those people either stayed caught up with their payments or got on a plan to get out of forbearance without being in trouble. 

Now, there is a small percentage of folks in forbearance programs that are still facing foreclosure, but it’s not nearly as many as these headlines lead you to believe. 

In fact, in the last two years, there were 413,000 fewer foreclosures than had been averaged in the years prior; therefore, foreclosures are way down.

There are a few reasons for that. If I’m a homeowner that has plenty of equity in my home and I’m struggling to make my payment, I’m not going to let the bank foreclose. I’m going to sell it onto the market and maximize the amount of money I get in my pocket!

Moreover, because of how low inventory is right now, the current market can easily absorb any new listings that come on by way of foreclosure.

Today’s data shows that most homeowners are exiting their forbearance plan fully intact. 

Today’s pro tip: When you’re looking at any sort of news, whether it’s real estate or otherwise, check your sources, read the full article, and understand that these news outlets that are putting this information out there are there to get views, clicks, and ad revenue and they’re not necessarily there to educate you on the actual factual information. 

Get with your local team or your local real estate professional, connect with us, and we’d be happy to share with you what’s going on in your market. That’ll be a lot more dependable than what you’re finding on the Internet. 

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.