Some of the most asked questions I get asked in recent years are "when is the market going to crash again?" Or how is the "real estate housing market?" With the run up on home prices in the past two years a lot of people are looking for signs that this might become 2008 all over again. Lending practices are now much tighter than 2008, but at some point there is going to be some pain in the real estate market. We are starting to see this with the interest rates quickly rising. The rise in rates have really hurt buyers, sellers, and builders. 2023 should be an interesting year!
From a foreclosure standpoint, we are still well under what we previously had before the pandemic. As of now homes still have equity, unless they have very recently purchased and had to turn around and sell for some reason. When I first started investing in foreclosure property in 2016 there were 20-30 foreclosures per month in Hendricks County that would be advertised for sale. Since then it has progressively declined ever since. We are now down to about 3-8 in a given month, but only 1-3 per month actually reach the auction date and are sold.
With the rise in rates and shift in the real estate market I expect to see these numbers increase in late 2023 and beyond. Before when home prices were rapidly increasing, homeowners in financial trouble forced to sell were able to get out of the home because of the equity. If job losses ramp up along with higher interest rates there will be some stress on homeowners and the real estate market.
If you are looking to buy, sell, or invest connect with me today. I stay up to date on all the real estate trends so you can make a great investment.