Potential Foreclosures Fears are Fading
Due to the amount of home mortgages that were in pandemic-related moratoriums, many analysts predicted a glut of foreclosure homes when the moratoriums ended on June 30th. However, several large banks have reported that most clients have already exited those programs and began paying their mortgage payments again. JP Morgan reported that about 90% of their customers who were in the forbearance programs have now exited those programs. Also some banks indicated they have their own programs to help clients who still have difficulty with mortgage payments due to Covid-19 related issues. So, it would appear there is to be no glut of foreclosure homes coming on the market anytime soon.\
Inventories of homes available for sale continue to be extremely low. This is causing prices to maintain their current high levels. Also, the cost of building a new home has increased considerably due to the increase in raw materials pricing, and the local shortages of construction laborers. There is some light at the end of the supply tunnel, as homeowners who have been reluctant to list their homes for sale due to the pandemic are now encouraged to do so since the vaccination rate has increased, and infection rates have come down.
In our area here in Western North Carolina, inventories of homes for sale remain low. If a well-kept home comes on the market now, it often has multiple offers within a few days of listing. Some out-of-area buyers are making offers on homes without seeing them, as they fear the home will be sold before they could get to the area.
Some advice to buyers: If you are looking to purchase a home in our area, please be pre-approved for a mortgage, or have a “proof of funds” letter from your bank or brokerage company before you come here to buy. Also, be prepared to put due diligence money upfront, as this indicates you are a serious buyer.
Please, if you have any questions about homes in our area, let us know. We can help.