Are all of these forbearances going to cause a market crash, similar to what we had in 2008? Hi, I’m Natasha Carroll, with Natasha Carroll Realty. As a February 14th, the Mortgage Bankers Association has information to address this, and it looks like we’re in pretty good shape. 84% of the people who enter into forbearance are either out of forbearance currently or working through it to set up repayment plans. 50.8% are paid in full, 33.6% worked out repayment plans, and only 15.6% are still in trouble.
It’s important to understand what’s happening with forbearance, and the numbers are continually going down. As of now, there are only 5.22% of all mortgages 📃 that are actually in forbearance. So, we keep hearing all this information in the news 📰 about how we’re going to crash💥 because forbearance is so high ⬆️ , but if you look at the true facts, that isn’t just the case. For 2021, according to all of the experts that are forecasting an increase, 5.9% on average for appreciation in the home 🏡 prices for 2021. Also, there’s a concern from Americans, we see crazy headlines that the market will crash because of home pricing increasing so quickly. However, if we compare the average price and home appreciation from 2002 to 2005, leading up to the 2008 crash, the average annual appreciation was 10.3%.
If you look at it now from 2017 to 2020, the average annual appreciation for the home prices is 6.3%, which is drastically less, very, very different situation today. It’s easy to listen to the news, but it seems there’s a lot of hype and negativity around what is happening, and it’s not based on actual facts. Natasha Carroll here, with Natasha Carroll Realty, and we love to help educate you more about the market. If you have any questions and you’re thinking about buying or selling, please give us a call, we’re always here to help. As always, have an awesome home buying and selling day.
