Foreclosure Next Exit
Foreclosure Next Exit

They jumped 69% after the moratorium ended the number of homeowners

Receiving notices to start the repossession process, climbed to 7100 in the united states.

 

That’s the biggest number in eight months

Now, from a historical perspective, a big picture – that’s not a very big number and we’re going to talk more about that here in a couple minutes, but this is how things typically get started.

 

We see big jumps like this

And we’re going to talk about why, because Investors and big money are waiting on the sidelines to scoop up these homes.We know that the home ownership rate has been dropping as more companies corporations and just Investors come in and buy homes for their portfolios and even CNBC had a headline a few days ago.

 

Foreclosures are surging now that the mortgage bailouts are ending.

That’s another word to call them right: the moratoriums are mortgage bailouts, essentially, but they’re still at low levels. Yes, but let’s take a trip down memory lane here in the year 2008 about 10 months before the financial meltdown really kicked in, that was October, approximately October 2008. And what did we see early in the year of 2008?

 

We saw at that time. Foreclosures had jumped 75 percent

And that was early 2008 reporting, the numbers from 2007 – and you see this article came out January 2008. So this could be the start of something or it might not be and here’s.

 

Why? Because the banking system is entirely different now

Than it was back then you see when the housing market started diving back in 2007-2008 banks were not sure at that time.They were not sure that they were going to get infinite life support. Now the banks have been promised infinite life support and whatever loans, even bad loans are given out.

 

They’ll know that the money printers or the Digitizers of the currency

Will just come in and buy the portfolio by the mortgage-backed securities  inject.

 

Whatever liquidity is needed from the money printer

So it’s a whole different world now financially compared to back, then I know people say you know: history repeats itself   but there’s a lot of things different right now we have to look at within the Banking system, so I don’t think this is going to be a big turning point.

 

Well, let’s take a look at some more information today

A Recent article I read out on real estate said Investors rush to buy nearly one in four homes  But what does that mean anytime You have Investors, even if it’s somebody with just a few homes, it’s going to be someone that’s going to be buying the home and bidding up the price and possibly outbidding someone who wants to buy the home to live in themselves as an owner .

The young couple just now, looking for their first home the first time home buyer, are especially going to be  in a more difficult position now because of this, and where does it end right?

 

There’s no law that says Investors can’t buy so many homes

You can have ten thousand twenty thousand fifty thousand a hundred thousand homes. You get a mega corporation with access to ultra cheap funds,  even access to the fed window that can go out there and literally  scoop  hundreds of thousands of homes and there’s no rules or laws against it right.

 

So until some of these things change some of these laws –  you’re going to continue to see, in my opinion, rising home prices, but there’s a pretty big supply of homes coming on the market.

 

Let’S talk about the end of the moratoriums and how it may impact the supply versus demand, equation and Redfin put this out. Just recently, we see the median sale price for homes in September was 376,800

 

That’s actually down slightly from the prior month, so home prices dropped from August to September. Now that’s pretty much a seasonal drop.Month-To-Month drops really don’t tell you much because year over year, home prices are still up nationally about 14 right now, let’s take a look at a number that we really need to keep an eye on.

On the market and what, if another 1.5 million homes hits the market. Will it be enough to tip the scales or will Investors come in?

Will the banks just keep on giving out mortgages for people to come in and buy the homes, no matter how high the prices are, so prices technically, don’t have to come down even with the supply jump right as long as there’s banks that can loan out endless Amounts of money, as long as there’s Investors, with access to ultra cheap rates and no limits on how many homes they can buy.

 

The Van Mill Group
  • The Van Mill Group

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