Although the housing market was one of the clear economic winners this year, high unemployment means millions of Americans are struggling to make their mortgage payments. Does this mean we should anticipate a foreclosure crisis similar to 2008?
Kathy Fettke, our Co-CEO, and Rick Sharga, Executive Vice President of RealtyTrac, tackle this important issue (and many more!) on our last webinar of the year 2020.
On this first video, we will cover:
- About Rick Sharga
The US Economy
- GDP: Record Drop/Record Rebound
- Unemployment Soared, then Slowed
- Jobs Have Recovered Quickly (Job recovery during this “recession” vs. previous recessions)
- However, Losses May Take Years to Fully Recover
The Housing Market
- Existing Home Sales Surpass 2019 Sales
- Historically Low Inventory
- Demand Remains Strong
- Demand Drives Prices Higher – Wages & Rates Help Affordability
- New Home Sales are Exceptionally Strong
- Inventory Struggling to Keep Pace
- Housing Starts Offer a Glimmer of Hope
Watch Part Two for more information on “Distressed Inventory: Forbearance & Foreclosure.”
In Part Two of this webinar, we cover:
Distressed Inventory: Forbearance & Foreclosures
- Serious Delinquencies at Record Highs
- Loans in Forbearance = Longer Delinquency
- Foreclosure Activity at Record Low
- Less than 5.5% of Mortgages are in Forbearance
- Forbearance Requests Peaked in March
- 81% of Forbearances are Extensions
- 87% of Exits (of Forbearance Programs) are Successful
Watch Part Three to hear Kathy Fettke and Rick Sharga answer viewer questions about their foreclosure crisis predictions.
- The vast majority of rent is still coming in on time.
- Some news outlets are driving false reports or misleading the public about rent collection during the pandemic.
- The average percentage of rents being paid right now are only 2% below where they were a year ago.
- Most of the rent collection issues have been with lower-priced rental units.
- What website can I go to get this kind of data?
- For first time investment buyers, would it be a good idea to wait for foreclosure auctions to begin again
- What steps should real estate investors looking to buy properties at a discount take now to prepare for buying opportunities?
- Any changes to Section 8?
- Are people in forbearance the same as those in pre-foreclosure?
- Do you see these kind of dynamics continuing over the next 3-5 years
- How should we be preparing for the opportunities ahead?
- In which markets might there be more distress
- If you’d like to know more about real estate investing, please visit RealWealth at realwealthnetwork.com and become a member — it’s free!