Some Points To Ponder About The Market…

Many people thought the market would plunge into a recessionary state with wild price drops. Why didn’t this happen? Largely because most of the people struggling with housing insecurity, are renting. This is causing a massive stabilization of rents and ending some pretty severe rent hikes of the last year, as landlords seek to keep tenants in place as best they can. Also, essential workers who have been so vital to us all from medical to grocery to services, deserve much consideration and assistance as they put their own health on the line.

Secondly, if you were expecting a massive foreclosure market, its first identifying feature being Notices of Default, you probably won’t see that either as lenders are trying to work with their borrowers, and because of the ascending market of the past 5 years, most have enough to equity to sit this out, take the forbearance and still be able to sell at this end of the pandemic, if they still need to, and probably still have equity, therefore no foreclosure or short sale. Are lenders getting tighter with their warehouse lines? Earlier yes, as many refinances clogged up lines, and spooked the secondary market from buying. This seems to have largely abated, and there is a return to robust lending.