June 2020 Market Update

Sure! One of the biggest questions in real estate right now is whether this historic unemployment rate will bring about a new surge of foreclosures in the market. Despite the staggering number of claims, there are actually many reasons why we won’t see a significant number of foreclosures like we did during the housing crash in 2008.
According to John Burns Consulting, well over half of the homes in America have at least 60% equity. That number is drastically different than it was in 2008 when the housing bubble exploded! The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their home was worth. So at that point, many homeowners just walked away. Today, 42% of all homes in this country are mortgage free – completely paid for, so not at risk for foreclosure. 
In addition, CoreLogic notes the average equity mortgage homes have today is $177,000. That’s a significant amount that homeowners won’t be stepping away from, even in today’s economy. In essence, the amount of equity homeowners have today puts them in a much better place financially than they were in 2008.
The bottom line is, we do feel fear and uncertainty right now, and it’s not going to be easy. We can, however, see strength in the current market through homeowner equity that has not been there in the past. That could be just the encouragement to help us make it through!
If you have any thoughts, I’d love for you to share them below. Thanks so much

June 2020 Market Update For South Lane County
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