Written by: Jason Kritzberg on December 8th, 2020
What’s Happening Today?
Way before COVID-19, housing inventory had hit record lows, and the problem has only gotten worse as housing demand continues to go up. Contradictory, real-estate has been at an all time high. But how could this be? Well, total home sales are outpacing new listings by a wide margin every month.
But, this can’t be good right? Wrong! Home prices have risen as a result of the rising demand in home buying. According to Homesnap, “the average list price for properties that sold rose 6.7% from September to October this year, which Homesnap said is significantly higher than the same figure in 2018 and 2019.” This means that people who originally planned to sell their home later on in the future are opting to put their home on the market now to make more of a profit, ultimately freeing up more housing on the market.
Housing Forbearance 2020
What is Forbearance? In simplest terms, it is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is to “hold back.” At the beginning of 2020, over 5,760,000 United States families granted forbearance on their housing situation.
These numbers are surprising and one can think to themselves, “this means a housing market crash is in our future.” Well, according to Keeping Current Matters, “nearly 44% [of those that granted forbearance] have either paid off their mortgage or opted out. It also shows that of all the homeowners in forbearance, only 80,000 are at risk of moving into foreclosures”. Check out the graph to see more:
In 2008, the market was flooded with homes that were foreclosed upon. Today, we are looking at much different numbers. Not only can most homeowners sell their home today, but they can walk away with making a profit from it due to the rise in housing prices! This just goes to show that the housing market will not be crashing come January 1, 2021.
The Bottom Line
The bottom line is that this year has been tough. COVID-19 has stricken our country and many have seen extreme hardship – wether thats financial or health. However; the good news is is at the housing market is predicted to succeed come 2021. We are in a much different state then we were in 2008, pandemic and all! With housing prices increasing, more people listing their home, and more purchases in rural areas, the market will see exponential growths in the new year! If you are looking to increase these numbers and put your home on the market, give Stephen White Real Estate a call! This is the best time to sell your home to get a large profit return, so why not start the process now?