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Heading into the last month of 2020, it’s surreal. We are living through a global pandemic, the Presidential election, and more. It was tough for everyone. It was unexpected to see the Real Estate Market flourish during this tough time. Within the year 2020, my team and I helped over 25 families sell and find their forever homes.
The market is ever evolving. Our latest listing at 20404 Seton Hill Dr. received 30 offers within being on the market for only 5 days. 7 of the offers were cash offers. The house opened escrow in 10 days after being on the market, with an cash offer way above the the asking price.
With the massive surge of unemployment that happened this year, it’s natural to assume that a massive surge of foreclosures will follow. However, history is not expected to repeat itself this time. The unique conditions that led to the 2008 market collapse and foreclosure crisis were in big part due to cashed-out equity. With many borrowers owing more than they could afford on their homes, mass foreclosures followed.
Today’s market, however, looks a lot different. Instead, homeowners have an abundance of equity, and lending standards are much stricter. This means that instead of foreclosing and walking away, many homeowners are in a good position to protect their investment.
Bottom Line
The reality of the situation is this: through all of the hardship Americans have faced this year, people are going to fall into foreclosure. However, the last thing anyone wants right now is another foreclosure crisis like 2008, and there are many factors that suggest it’s not going to be like last time.
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