Thoughts On The Current Housing Market Boom?

Question

The housing market is sizzling like a cracked egg on a Phoenix sidewalk in the middle of July, and home prices are high. How long do you think this will last, and what do you think is the best course of action? Some common lines of reasoning I see:

1. Wait it out. Sellers are sitting on their homes & not in a rush to sell. The increased housing prices are unsustainable. When the eviction moratorium and mortgage forbearance programs end we will see a flood of property foreclosures mid 2021.

2. Buy now. The increase in housing prices are due to legitimate low housing supply and high demand. Take advantage of low mortgage rates. Even if housing prices were to eventually drop, they would not reach pre-COVID levels.

3. It's always a good time to buy if you know your numbers.

This is all speculation of course. I am simply curious!

Chris Seveney · Answer

@Arionna Russell

I would say 1. But mortgage foreclosures will not be till late 2021 and into 2022 earliest.

I invest in notes and I had foreclosure start pre COVID and am not getting dates until 2nd quarter next year for sales. For the large institutions they cannot start foreclosures until 2021 at the earliest and they are not efficient so any foreclosure “crisis” is not going to occur in the next six months. I actually think banks will slow play it and not overwhelm the market and we will just see a steady flow of them for 3-5 years starting in 2022

This is all my guess. The only thing I am extremely confident on is foreclosures will not hit as soon as people think because it is a long process in many states. Also many borrowers have equity and in that case they file BK