1. Foreclosures are up but have increased from a basically non-existent period during the pandemic when many loans were granted forbearance. Today’s increase in no way indicates a huge rise in foreclosures coming like during the 2007 Financial Crisis.
2. Prices have risen but by single-digit appreciation, and are projected to be fairly steady for the next few years as more homes are expected to come on the market. Many small investors are expected to sell their properties for a variety of reasons ie. equity appreciation, changes in laws in some cities such as NYC regarding AirBnB rules and the desire to take advantage of other opportunities.
3. The average US home has about $290,000 in equity – a great position to be in. The past quarter saw an average of $13,000 in equity added. 38.7% of homeowners own their home free and clear – no mortgage. 30% have more than 50% equity. This puts them in a good position to make their “next move” – whether an investment property, second home or a move to be near their family/grandchildren.
Queens County – September 2023 stats:
Pending Sales (in contract) +10%
Pending Sales Median Price -8.7%
6.7 Months of Inventory = A Balanced Market
Nassau County –
Pending Sales -10.3%
Pending Sales Median Price + 5.3%
2.7 Months of Inventory = A Sellers’ Market