It's These 3 Soaring Numbers Revealing The Foreclosure Crisis

[@Manausa]

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[@SimonWaits-ps8di]

So, no crisis even as home sales slow down?

[@Manausa]

That's where the market stands right now @SimonWaits-ps8di. Of course, it won't be that way for every metro area, there will be some with declining populations that see prices come down and equity dissolve. But for most of the US, low inventory has caused prices to move higher at alarming rates, protecting homeowners who go into default on their loans.

[@LockedUpLarry]

“Equity” shot up in 2008 as well. It’s called a bubble. 😅

[@Manausa]

Thanks for sharing your opinion @LockedUpLarry, but you are suffering from recency bias. Back in 2008, the government stopped backing loans for lower credit buyers (something they had done for 50 years). Builders kept building and the inventory grew to over 4 millions homes (today we're way below 2 million homes, and the government is looking at bringing back their traditional lending standards). No bubble, worse. Home affordability crisis where all but the wealthiest will have to rent from Wall Street, unless we start building homes.

[@mctalg-rhex3246]

Lots of shadow inventory. Builders have stopped construction to completion because buying has slowed. Lots of apartments that finished that last few years look full from the road but you drive through the complex and all the units in the back are empty. They are still building more. So many empty luxury gated HOA communities trying to sell lots but they are all empty. New road electric boxes building pads but not filling up.

[@Manausa]

That's good feedback @mctalg-rhex3246, do you mind sharing the market or area where you observed this?

[@alicewade6215]

Are you saying there's never going to be a large foreclosure problem like we have in 2008?

[@Manausa]

That's a good question @alicewade6215, I appreciate you taking the time to add to the discussion. No, there are so many variables that could lead to that. Massive unemployment being the greatest threat. I suspect there will be another foreclosure crisis in the future, but it we should be able to see it coming. Inventory will start to rise (we're still about 1/3rd of where we were in 2010ish, so there's a long way to go. Inventory is currently rising, but remains very close to an all-time low. Some local markets could face a foreclosure crisis if a large employer(s) shuts down operations. I expect to see the lock-in effect diminish over time and normal life will return to housing, but we'll have to create more homes for our growing population.

[@mmial9165]

How is equity a piggy bank when I can only borrow it. Also at a higher interest rate.

[@Manausa]

That's a good question @mmial9165, piggy banks are for storing money. Yes, you can borrow against it, or you can collect it all when you sell your home.

[@kajohnson1261]

That's a lot of money in the tappable equity for homeowners

[@Manausa]

Thanks for sharing your opinion @kajohnson1261

[@LockedUpLarry]

Reports show most major cities require 108k for a single family home to afford a house. Reports show that only 36% of US households meet this mark-meaning their own house’s “value” exceeds their ability to buy it at that cost. Furthermore, as these homes stay off the market, the selling averages will only continue to grow. 400k and below homes will sit on the market. Why? Because they are really 150-300k in value. Nevertheless, these realtors will give it to you with a smile….all the way to the bank. Smh.

[@Manausa]

@LockedUpLarry, you can't actually believe realtors control home prices, right? Supply and demand. PERIOD. We stopped building homes 16 years ago, the supply is too low in the majority of markets, that's why we're becoming a nation of renters. Build more supply, prices will respond. Don't build, prices will respond by going higher. PERIOD.

[@LockedUpLarry]

@ supply and demand, unless demand or supply do not fit the overall narrative. Nonetheless, I do not have some distorted illusion of what’s taken place during the pandemic. Since we are referring to national data comprised from the top 50 “metros,” and to your point…No! I do not believe realtors are the sole reason for the “pandemic” run up. We do know the tricks of the trade though, don’t we? Realtors that pretend and operate under the guise of being ethical and/or with some fiduciary responsibility is plain crazy work-PERIOD (you like that word)

[@LockedUpLarry]

@ what if I told you there are 15 million empty homes in the U.S.? The whole “we stopped building 16 years ago” , from 2008 crash era falls apart -PERIOD! Most of these are rentals. Since 08, MBS have been traded like stocks. You bring up a great point though…. in that these build to rent neighborhoods are unethical in light of the pandemic big money moves to single family real housing. There are more realtors than houses for sale in the U.S. That’s not by accident. Lol. There are not very many barriers to entry-period. I’ll let you assume the meaning behind that one.

[@Manausa]

@LockedUpLarry, just look at the construction numbers. The last 16 years (where our population grew) we built about 40% of the numbers we did in the 70s through the 00s. We always have vacant homes, the vacancy rate remains in line with historical averages, or slightly lower. Agree 100% on barrier to entry and ethical problems, but I put the top 1% of realtors with the top 1% of any industry. We are tough, smart, and work like hell. PERIOD :).

[@LockedUpLarry]

@ I think we can both agree that things are a mess. We just can’t agree on the reasons to why. I’m not saying construction is not down…. I would say it’s being consolidated to a few companies who serve walstreet. Things are going to get shaken up. It’s only a matter of time, my friend.

[@sheabilladeau1392]

Shocker. A real estate agent says we should buy now because rates aren't ever going down. Super surprised that he has a good outlook on the housing market. Yeah except that houses are unaffordable and people are paying everything on credit cards due to inflation. Wages have not kept up with inflation or the costs of owning/maintaining a home. Just because things look ok now for those with equity, not everyone is in the same place. Additionally, what happens when unemployment goes up when people get laid off and lose their jobs? Then you have many forced sellers. Yeah, I am not buying the positive outlook this guy is vibing. It is dismal out there and it will get worse.

[@Manausa]

I'm sorry you don't like the work I produced @sheabilladeau1392, did you happen to watch the full video or are you just responding to the title? The primary point is there is no foreclosure crisis now because homeowners have equity. Yes, a big change in the economy (to the negative) will effect the market and bring down prices. But that's not happening yet. Watch my other videos, I talk about the home affordability crisis regularly. Most data sources are forecasting higher prices (low rate of growth) over the next year, so it's going to get worse before it gets better.

[@MaryJones-mm7qk]

I bought my house in 2018 and have more equity than debt because prices went much higher.

[@Manausa]

Thanks for sharing your experience @MaryJones-mm7qk, you certainly fortunate with your timing!