Cobb County Realtor® Ken Mandich Is Listing The Top Reasons To Use A Realtor® Sell Your Home

Marietta, Georgia -

Cobb County, GA, REALTOR® Ken Mandich is urging homeowners looking to sell their property to reconsider if they are planning on making the sale on their own. The REALTOR® is listing the benefits that come with enlisting the services of someone as experienced and as qualified as him and other Complete Realty Team REALTORS® in Marietta Georgia.

When a homeowner sells a home on their own, it is called an FSBO (For Sale By Owner) sale. The property owner assumes all the responsibilities that would generally be assigned to the real estate broker or agent. This involves handling all steps of putting a property up for sale and following through till the deal is closed including determining the home’s selling price based on factors such as its size, its features, and the rate at which other homes in the same neighborhood with the same number of bedrooms and square footage sold for.

The FSBO seller also has to take over the marketing to find a buyer, list the property on MLS (Multiple Listing Service), schedule appointments for home visits, stage the home to appeal to the buyer, negotiate the price when the offers come in, prepare all the legal documents including the deed to ensure full transfer of the rights to the property, and finally close the deal based on the laws of the state where the property is located.

It is very tempting for homeowners to go down the FSBO route because it can help them save money on the commission that the real estate broker must be paid for facilitating the deal. However, this is a trap as the statistics show a huge difference between the amount of money that homeowners expect to save and how much they finally end up saving.

For example, in a regular property deal where both the buyer and seller are using real estate agents, the commission, which is usually 5% to 6% is split between both. However, even when one party decides to save money by making an FSBO sale, they still must factor in the commission that has to be paid to the real estate broker representing the other party. So FSBO sellers only end up saving around half the money on commissions.

Moreover, according to statistics highlighted on Ken Mandich’s website, it has been shown through research into property sales figures that FSBO deals have a median selling price of approximately $24,000 lower than similar property deals which were handled by agents. This implies that property owners who opted for FSBO deals ended up saving a lot less money than they anticipated or, even worse, may have lost money while trying to save it.

Ken Mandich talks about the benefits of hiring a REALTOR® to oversee selling a property by saying, “Hiring a realtor to sell your house will ensure that it is priced at a value that is competitive with current market prices. They also have many more avenues to market the property listing. This enables them to find more buyers and, consequently, better offers for the property. Having a REALTOR® on one’s side will also give the property owner an upper hand in negotiations as they closely follow industry trends and have a good judgment on the intrinsic value of a desirable property. A REALTOR® also has a keen eye for interior design and knows what it takes to stage a property such that it instantly appeals to the target buyer. A dedicated professional will also be available full-time to talk with potential buyers and schedule site visits. Finally, apart from bringing years of pricing and negotiation experience to the table, a REALTOR® will also take over the paperwork involved to ensure that the sale is legal and binding. In short, a REALTOR® will work tirelessly to ensure that their client gets everything they deserve for their valuable property asset.”

Homeowners in Cobb County, GA, looking for reliable, knowledgeable, and local REALTORS® in Marietta can contact Ken Mandich at (404) 982-4559.

Source: Cobb County Realtor® Ken Mandich Is Listing The Top Reasons To Use A Realtor® Sell Your Home

Buyer Demand Is Moderating – What Sellers Need To Know

If you’re thinking about selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers (see visual below):

But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest Confidence Index from NAR:

“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”

While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.

If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a sellers’ market.

If you’re ready to sell your house, seek the advice of a real estate professional. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:

“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”

Bottom Line

While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.

The post Buyer Demand Is Moderating – What Sellers Need To Know was first published to Complete Realty Team. Read more on: Complete Realty Team Real Estate Agents Blog

Is A Home Inspection That Important?

Short answer, YES! Unless you are very skilled in the construction trade, we highly recommend that you get a home inspection before purchasing that dream home.

Some Highlights

• If you’re buying a home, here’s what you should know about your home inspection and why it’s so important.
• A home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase so you can avoid costly surprises down the road.

Let’s connect so you have an expert on your side to guide you through the process.

The blog post Is A Home Inspection That Important? is courtesy of Complete Realty Team. Find more on: Complete Realty Team - Ken Mandich - REALTOR - ERA Sunrise Website

How Your Home Equity Might Be Able To Help With Your Retirement Goals

Whether you’ve just retired or you’re thinking about retirement, you may be considering your options and trying to picture a whole new stage of your life. And you’re not alone. Research from the Retirement Industry Trust Association (RITA) shows 10,000 Baby Boomers reach the typical retirement age (65) every day, and only 47% of the people in that generation have already retired.

If this sounds like you, one thing worth considering is whether or not your current home will suit your new lifestyle. If your home doesn’t have the features or benefits you’re looking for, the good news is, you may be in a better position to move than you realize.

That’s because, if you already own a home, you’ve likely built-up significant equity, and that can help you fuel your next move. According to the National Association of Realtors (NAR):

“A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.”

In fact, over the last twelve months, CoreLogic reports the average homeowner in the United States gained roughly $64,000 in equity due to home price appreciation.

You can use your equity to help you achieve your homeownership goals. Whether you want to downsize, move closer to loved ones, or buy a home in a dream destination, your equity can help get you there. It may be some (if not all) of what you’d need as your down payment on a home that better fits your changing needs.

To find out how much equity to have in your home, reach out to a trusted real estate professional today.  

Bottom Line

Retirement is a big step and so is buying or selling a home. As you move into this new phase of life, let's connect so you have an expert to guide you through the process as you sell your current home and give you expert advice as you buy one that’ll better suit your needs.

The Blog Post How Your Home Equity Might Be Able To Help With Your Retirement Goals was first published to CompleteRealtyTeam.com. Read more at: Complete Realty Team REALTORS Website

Increase In 2022 Home Price Projections By The Experts

If you’re wondering if home prices are going to come down due to the cooldown in the housing market or a potential recession, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):

As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says:

“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”

Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.

Bottom Line

If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in our local area, let's connect.

The post Increase In 2022 Home Price Projections By The Experts was originally published on Complete Realty Team. See more at: Complete Realty Team Agents Website

What Effect Would A Recession Have On The Housing Market?

According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Bottom Line

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

The previous article What Effect Would A Recession Have On The Housing Market? was originally seen on CompleteRealtyTeam.com. Find more on: Complete Realty Team Agents Site

Reports Show The Homeownership Rate Is Growing In The U.S.

The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:

That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.

If you’re thinking about buying a home this year, here are just a few reasons why so many people see the value of homeownership.

Why Are More People Becoming Homeowners?

There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”

When you buy a home with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.

That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment.

And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Bottom Line

The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.

The preceding article Reports Show The Homeownership Rate Is Growing In The U.S. was originally published to Complete Realty Team. Learn more on: Ken’s Website From Complete Realty Team

Complete Realty Team Explains Why You Need a Realtor to Help Buy a Home

Marietta, Georgia -

Marietta, Georgia - Local REALTOR® Complete Realty Team wants to emphasize why people who are buying a home will need the help of a Realtor. First of all, Realtors are licensed professionals and most home sellers will have a Realtor or a listing agent who is working for them. Home buyers will also need someone to represent their best interests, such as buyer’s agent or Realtor. A Realtor has access to a multiple listings service that lists the home available for sale and the features that each particular home has. And it is advisable to choose a local Realtor who is highly knowledgeable and experienced regarding a specific local market.

Having the assistance of a Realtor can also help the home buyer save a lot of time and avoid potential problems. And the home buyer need not worry about having to pay a commission to the Realtor because it is the home seller who typically pays for these.

Another key advantage of having a Realtor to help the home buyer is that the Realtor has the necessary negotiating skills, particularly with regards to the selling price. This is especially helpful for first-time home buyers who are still new to the home buying process.

Ken Mandich from Complete Realty Team says, “A lot of the work of a Realtor takes place behind the scenes. They work all hours of every day. A great Realtor will ensure that a transaction is smooth and easy and make their job seem relatively simple. In reality, that couldn't be farther from the truth. Realtors constantly absorb the stress and chaos of real estate transactions, so their clients don't feel the pressure. Buyer's agents work with clients to find properties that meet their needs and budget. Because of the number of properties available in the local market, working with buyers can be a very time-consuming activity.”

When getting the help of a Realtor to buy a home, it is also important to note that the law mandates the Realtor or real estate agent to act in the best interest of the home buyer when negotiating a deal. This is known as fiduciary duty and it can have major impact on the buyer’s decision making process. As a buyer’s agent, they are obliged to help the buyer to negotiate with sellers and their agents. This protects the buyer from unreasonable expectations from non-compensated professionals, who will benefit financially from the outcome.

Complete Realty Team has established as their main goal to allow home sellers and buyers to find the real estate agents who can help them and know how to ensure that their clients are comfortable and know and understand exactly what is happening at every step of the home selling or buying process. For home sellers, they will help in coming up with a personalized and winning strategy for selling the home as quickly and for the highest price possible. Ken Mandich is a Realtor who serves as the team leader of the group of real estate agents. He is experienced and knowledgeable in digital marketing and he uses this to help the house of the seller to be placed in front of more people who are actively looking for a home to buy. For home buyers, they will ensure to protect their investment by negotiating the best possible deal, including the terms of the contract. And they will also provide the best resources to help the home buyer in finding the best possible home financing services, homeowners’ insurance, and utilities. They provide their residential real estate expertise in Cobb County, including surrounding areas such as: Acworth, Austell, Fair Oaks, Kennesaw, Mableton, Marietta, Powder Springs, Roswell, Sandy Springs, Smyrna, and Vinings.

People who would like to learn more about the services offered by Complete Realty Team, such as offer assistance to those who want to buy a home in Marietta, can check out their website, or contact them through the telephone or via email. They can be contacted 24 hours a day, from Sunday to Saturday.

Source: Complete Realty Team Explains Why You Need a Realtor to Help Buy a Home

Where Will Home Prices Continue To Go This Year?

Whether you’re a potential homebuyer, seller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:

“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Moderates Today

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

Why do all of these experts agree prices will stay continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way.

Where Will Home Prices Continue To Go This Year? is republished from Complete Realty Team. Find more at: The Complete Realty Team Blog

Complete Realty Team Offers More Proof that There Isn't a Housing Bubble

Marietta, Georgia -

Marietta, Georgia - Local REALTOR® Complete Realty Team has provided more proof that there isn’t a housing bubble and that the housing market is not headed for a crash like the one experienced in 2008. They have recently released this article in response to the buzz in the media that made some people fear that the market is in a housing bubble and that a repeat of the 2008 housing market crash may occur. They want to point out that there is concrete data indicating that the current situation is nothing like the last time.

First of all, they want to emphasize that there is a shortage of homes on the market today, and not a surplus. The supply of inventory that is required for sustaining a normal real estate market is about six months. If more than that, there is a surplus and will cause the prices to go down. And if less than that, there is a shortage and will result into a continued price increase. According to data from the National Association of Realtors, unsold inventory is at the 3.0-months’ supply level at the present selling pace. Thus, there is a shortage and prices will not likely fall at this time. Instead, the opposite is true where prices are expected to go up because of the shortage.

Second, the home financing standards were much more relaxed during the crash in 2008. During the period leading to the housing crisis in 2008, it was much easier to obtain house financing compared to the present time. Data is shown that running up to 2006, banks were creating artificial demand by lowering their standards and making it easier for people to get home financing or refinancing their current home. The financial institutions back then were taking on much greater risk in both the individual and the home financing products being offered. This resulted in into mass defaults, foreclosures, and declining home prices. In contrast, home financing standards have been made stricter in recent months because of monetary policy tightening and increasing economic uncertainty. Thus, there will likely be no mass defaults and foreclosures in the near future.

And finally, it should be noted that the foreclosure volume is very different from what it was after the housing bubble burst in 2008. Furthermore, homeowners at the present time are more equity rich. In contrast, in the run up to the housing crash, some homeowners were employing their homes as personal ATMs, withdrawing their equity once it has built up. But when the home prices started to decline, some of the homeowners found themselves in a situation where the amount they owed was higher than the current equity that they have on their home. And some of them simply decided to walk away from their homes, resulting into a large number of distressed home listings that had to be sold at significant discounts. Those who are interested in knowing the location of Complete Realty Team can visit their Google Maps page at https://g.page/realtorken?share.

Complete Realty Team has the primary goal of enabling home sellers and buyers to find the real estate agents whose main priority is their clients and how to make sure that they are comfortable and know and understand exactly what is being done at every step of the home selling or buying process. With home sellers, they will help develop a personalized and winning strategy for selling the home fast and for the highest possible price. Ken Mandich is a REALTOR® who functions as the team leader of the group of real estate agents. He is well-versed in digital marketing and this enables the house of the seller to be placed in front of more people who are interested in buying a home. With home buyers, they will make sure to protect their investment by negotiating the best possible deal, including the terms of the contract. And they will also offer the best resources to help the home buyers in looking for the most appropriate utilities, home financing services, and homeowners’ insurance.

Those who would like to know more about the services provided by the Marietta REALTORS® Complete Realty Team, can visit their website, or contact them on the telephone or through email. They can be contacted 24 hours a day, from Sunday to Saturday.

Source: Complete Realty Team Offers More Proof that There Isn't a Housing Bubble

If You Are Selling A Home, Your Asking Price Matters More Now Than Ever

There’s no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house?

While home prices are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less buyer demand. Because of this, there are more homes on the market. And in a shift like this one, the way you price your home matters more than ever.

Why Today’s Housing Market Is Different

During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.

Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.

Why Pricing Your House at Market Value Matters

 

The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.

When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com explains the impact that’s having:

“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”

To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A real estate advisor knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.

Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.

Why You Still Have an Opportunity When You Sell Today

Rest assured, it’s still a sellers’ market, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

Mike Simonsen, the Founder and CEO of Altos Research, also notes:

“We can see that demand is still there for the homes that are priced properly.”

Bottom Line

Home priced right are selling quickly in today’s real estate market. Let's connect to make sure you price your house based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.

If You Are Selling A Home, Your Asking Price Matters More Now Than Ever was first published to Complete Realty Team. Read more on: Complete Realty Team In GA

How And Why Forbearance Helped The Housing Market

When the pandemic hit in 2020, many experts thought the housing market would crash. They feared job loss and economic uncertainty would lead to a wave of foreclosures similar to when the housing bubble burst over a decade ago. Thankfully, the forbearance program changed that. It provided much-needed relief for homeowners so a foreclosure crisis wouldn’t happen again. Here’s why forbearance worked.

Forbearance enabled nearly five million homeowners to get back on their feet in a time when having the security and protection of a home was more important than ever. Those in need were able to work with their banks and lenders to stay in their homes rather than go into foreclosure. Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association (MBA), notes:

“Most borrowers exiting forbearance are moving into either a loan modification, payment deferral, or a combination of the two workout options."

As the graph below shows, with modification, deferral, and workout options in place, four out of every five homeowners in forbearance are either paid in full or are exiting with a plan. They’re able to stay in their homes.

What does this mean for the housing market?

Since so many people can stay in their homes and work out alternative options, there won’t be a wave of foreclosures coming to the market. And while rising slightly since the foreclosure moratorium was lifted this year, foreclosures today are still nowhere near the levels seen in the housing crisis.

Forbearance wasn’t the only game changer, either. Lending standards have improved significantly since the housing bubble burst, and that’s one more thing keeping foreclosure filings low. Today’s borrowers are much more qualified to pay their home loans.

And while the majority of homeowners are exiting the forbearance program with a plan, for those who still need to make a change due to financial hardship or other challenges, today’s record-level of equity is giving them the opportunity to sell their houses and avoid foreclosure altogether. Homeowners have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Thanks to their equity and the current undersupply of homes on the market, homeowners can sell their houses, make a move, and not have to go through the foreclosure process that led to the housing market crash in 2008.

Thomas LaSalvia, Chief Economist with Moody’s Analytics, states:

“There's some excess savings out there, over 2 trillion worth. . . . There are people that have ownership of those homes right now, that even in a downturn, they'd still likely be able to pay that mortgage and won't have to hand over keys. And there won't be a lot of those distressed sales that happened in the 2008 crisis.”

Bottom Line

The forbearance program was a game changer for homeowners in need. It’s one of the big reasons why we won’t see a wave of foreclosures coming to the market.

In the market for a new home or selling yours? Reach out to us.

The Article How And Why Forbearance Helped The Housing Market is available on Complete Realty Team. Discover more on: The Complete Realty Team’s Site