You're not alone if you've been following recent headlines about foreclosures in the housing market. The media can be confusing and may make you think twice about buying a home for fear that prices could crash. However, the reality is that the data shows a foreclosure crisis is not where the market is headed in Toledo, Ohio, and understanding what that means is crucial if you want to know the truth about what's happening today.
According to the Year-End 2022 U.S. Foreclosure Market Report from ATTOM, foreclosure filings are up 115% from 2021, but down 34% from 2019. As media headlines grab onto this 115% increase, it's more important than ever to put that percentage into context.
While the number of foreclosure filings doubled last year, it's important to remember why that happened and how it compares to more normal, pre-pandemic years in the market. Thanks to the forbearance program and other relief options for homeowners, foreclosure filings were down to record-low levels in 2020 and 2021, so any increase last year is a jump up.
It's also worth noting that as the graph above shows, foreclosures are far below the record-high levels seen in 2010 when the housing market crashed.
So, while foreclosures are rising, keeping perspective is key. "The bottom line is there will be an increase in foreclosures over the next year (from record low levels), but there will not be a huge wave of distressed sales as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time."
Bottom Line
Putting the data into context is now more important than ever in Toledo, Ohio. While the housing market is experiencing an expected rise in foreclosures, it's nowhere near the crisis levels seen when the housing bubble burst, which won't lead to a crash in home prices.
Thinking about buying a home in the Toledo area? Let's grab a coffee or jump on a Zoom, I would love to chat with you and answer any questions you may have. Schedule below!
