I am getting a lot of people asking when the next foreclosure crash is going to happen.
Attom’s Midyear 2022 U.S. Foreclosure Market Report found that 164,581 U.S. properties had foreclosure filings, which includes default notices, scheduled auctions or bank repossessions.
The number includes the first six months of 2022 and is 153% higher year-to-year, but the figures are skewed by numbers generated during the pandemic when government orders slowed the process.
Foreclosure activity across the United States continued its slow, steady climb back to pre-pandemic levels in the first half of 2022,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While overall foreclosure activity is still running significantly below historic averages, the dramatic increase in foreclosure starts suggests that we may be back to normal levels by sometime in early 2023.”
I really do not think we are going to see a spike in foreclosures anytime soon, especially in Florida. There is definitely an evening out after the pandemic, yet it won’t be anything drastic. We are seeing a market adjustment, but with the past super low interest rates being 3-4%, I do not think people will stop paying for their mortgages. The asterisk with this is the economy, inflation and the potential for recession. Those are factors that could affect the housing market. With strong jobs and cheaper mortgages, I do not see the foreclosure market changing anytime soon in our beautiful state of Florida.
For more information, go to this article: https://www.floridarealtors.org/news-media/news-articles/2022/07/foreclosures-closing-pre-pandemic-normal