Buyers March 10, 2023

Will There Be a Flood of Foreclosures in 2023?

foreclosure sign in the shape of a house on a stick. cute too the point image.

Are foreclosures coming in 2023?

“I’m waiting for the flood of foreclosures to hit the market and get a great home at an amazing price!” This begs the questions though. Will there be a flood of foreclosures in 2023?

Now, that statement was definitely true in 2008/2009 when the market actually really did crash, and crash HARD. Now fast forward to the year 2023. Will the real estate market crash again??

Short answer: Likely not.

Revised lending practices for one, that’s definitely true. But let’s not overlook the major equity gains homeowners received over the past few years here in the Carolinas. There are very few homeowners who are “underwater” (owe more on their home than what it’s worth), and this go around there are plenty of able, willing, and ready buyers. Most sellers would be able to sell, for a profit, before any foreclosure proceedings took place. Not to mention the availability of being able to restructure or modify an existing home loan.

Bottom line … Most homeowners are in great shape (unlike in 2008/2009). Heck, the average homeowner in the Carolinas received a $57,000 equity boost year over year in last year alone. Plus, one-third of all homeowners in the US OWN their home outright, and half (50%) of homes in the US have over $250,000 in equity RIGHT NOW. 🤯

As you can see, we’re not likely to see that many foreclosures. The fact is that the real estate market has been good to the Carolinas and its not looking like it’s changing any time soon. Fortunately, there will be no flood of foreclosures coming into our market.

Plus, the experts are predicting that our market will be pretty consistent in the coming year with a steady stream of buyers and sellers. We won’t be to the levels of 2021, but we will return to a pre-pandemic norm. Which, in case anyone forgot, was an amazing market to be in.

If you’re interested in buying a new home or selling your home in 2023, reach out to me here!