Are A Wave Of Foreclosures Hitting The Market?
Hey Richmond, VA! Are you feeling a sense of dread or excitement at the prospect of a tsunami wave of foreclosed homes hitting the market? Today, we're here to burst your bubble and provide you with some much-needed context. Join us on FAF (Foreclosure Analysis Forum) as we delve into the recent headlines and shed light on the reality of the situation.
Recent Headlines: Foreclosure Filings Up 115% in 2022
One statistic that has been making waves is the reported 115% increase in foreclosure filings in 2022. While this figure is factually true, it's important to examine the full picture. The data comes from ATTOM, a leading curator of real estate data nationwide. However, upon closer inspection of their year-end report, ATTOM acknowledges that the rise in foreclosures is compared to the previous year (2021). To gain a comprehensive understanding, it's essential to consider a broader timeline.
Putting the Numbers into Perspective:
According to ATTOM's report, foreclosures in 2022 were actually down by 34% compared to 2019, which predates the pandemic. Furthermore, the report reveals that foreclosure filings have plummeted by a staggering 89% since their peak in 2010. To visualize this, let's take a look at some historical data.
[Graphic 7: Display the increase in foreclosure filings in 2022] [Graphic 8: Showcase the decline from 2019 and the significant drop since 2010] [Graphic 9: Highlight the current historic lows]
Historic Lows and Realistic Expectations:
It's crucial to acknowledge that the current numbers are at historic lows, despite the rise in filings compared to the previous year. This information should provide some reassurance to those concerned about a foreclosure crisis. While we approach this topic with empathy for anyone experiencing the hardship of foreclosure, it's important to dispel any unwarranted fear or exaggerated optimism.
A Message for Nervous Nellies and Investors:
If you're feeling anxious about the potential consequences of an influx of foreclosed homes, we hope this analysis brings some peace of mind. The current data indicates that the situation is far from catastrophic. On the other hand, if you're an investor eagerly awaiting a golden opportunity, we regret to inform you that the market may not offer the windfall you were hoping for.
In conclusion, the recent headlines regarding a significant increase in foreclosure filings must be viewed in the appropriate context. While the figures show a rise compared to the previous year, they are substantially lower than pre-pandemic levels and historical peaks. Richmond, VA, can breathe a sigh of relief, knowing that the market is not on the verge of a foreclosure tsunami. Let's navigate the world of real estate with a balanced perspective, considering both the challenges and opportunities that lie ahead.