Why I’m not worried about the number of foreclosures like I was in 2010.
Is there a wave of foreclosures coming to the Columbia area? To answer this, we must look back. In 2010, there were almost 3 million foreclosures. The housing market was in terrible condition and everyone owed more than their homes were worth. Plus, lending standards were terrible, and anyone with a pulse could get a loan. In 2021, there were only 150,000 foreclosures, and in 2022 that number is getting closer to 250,000. Therefore, determining if the number is nearing pre-pandemic levels is tricky.
Do I see a wave of foreclosures coming to the Columbia area? No, because there are some big differences. First, lending standards have changed. Second, today’s market is appreciating instead of depreciating like it was during the 2010 crash. The amount of appreciation is slowing down, but it is still an appreciating market.
“So much has changed in real estate since 2010.”
Prices are leveling off, but they’re not going down, so it’s not catching a lot of people underwater. That brings me to the third big difference: people have a lot more equity. As prices appreciate, people have built up equity in their homes. All of these factors tell me that there’s not a wave of foreclosures coming to our area.
If you’re waiting for home prices to go down drastically before you buy, I wouldn’t bet on that. Anything could happen. If you’re waiting for interest rates to go down, remember that you can always refinance.
All of these headlines about foreclosures going crazy are just clickbait for national media. Plus, real estate is local. South Carolina has one of the healthiest real estate markets in the country. If you have questions or need any real estate help, call my team or message us on our Facebook page. We’d love to help you!