Are foreclosures going to continue rising in 2022? Back in 2010, the U.S. was at an all-time high with 1.6 million foreclosures. By 2020, a decade later, that number was at its lowest. During this time, the number went down because of government intervention during the pandemic. Now in 2022, the number is going back up. We’re already at about 160,000 foreclosures this year, which is a big increase.
If you look at the overall trend, that increase is not worrisome. Following the government’s intervention, lenders changed a lot of their lending practices, and we started cleaning up the foreclosure market because of better lending practices.
“The nation started cleaning up the foreclosure market by having better lending practices.”
The increase in foreclosures is making the news, but again, this change is abnormal. Factors like recession and inflation could start changing this curve, but nothing alarming.
We have better lending practices today, and people have a lot more skin in the game, especially here in northern California. We’ve seen prices go up 40% in the last two years. If you’re a homeowner, not only do you have a really low interest rate that you don’t want to get rid of, but you also have a lot of equity in your home. These factors will help.
If you have questions about foreclosures or the market in general, please call or text me. I’d love to help you!
