Foreclosures and Short Sales In Summer 2023

You might think that foreclosures and short sales are on the rise with the changing market conditions but they are still only about 3% of the market share.

If you look at the chart below you can see that they have ticked up a little from 2% in prior years to over3%.

Factors contributing to this are that many homeowners refinanced while rates were down. at 3% so they are in affordable mortgages.

Another reason is that property has not dropped in value more than about 10% in markets where it did drop so there is little incentive to “walk away” from their house and try to short sell or foreclose.

I closed over 70 short sales and a few dozen foreclosures throughout the recession so I experienced the width of the crisis of the Great Recession. The conditions that were present then are not present now. Unemployment is low, and people are not in “arm” loans that will be going up in the next few years.

In closing, let me say that I do not expect the number of foreclosures to rise much over 5% of all sales anytime soon. If you have any intention of short selling give me a call right away.

Here is a chart for you.

If you look at the chart below you can see that they have ticked up a little from 2% in prior years to over3%.