YOUNGSTOWN, Ohio (WKBN) – Prices for homes continue to go up but the number of foreclosed homes is also on the rise. Could this lead to a potential housing market crash?
A recent report on Realtor.com showed filings for foreclosure have gone up almost 70 percent. We talked to some local realtors who said one reason could be that the eviction moratorium has been lifted.
“Now that maybe that has either lifted or softened, you’re going to see the filings come up based on people not paying their mortgages or being in default,” said Jason Altobelli, with Altobelli Real Estate.
Which could cause more foreclosures to hit the market.
“When you take that segment of the market away, it just allows for less inventory to hit the market which, ultimately more buyers, less inventory, prices are going to go up. It’s pretty straightforward,” Altobelli said.
Back in 2007/2008, the country saw a huge economic recession. Much of that was due to the housing market.
One realtor we talked to doesn’t believe we are in the same spot we were almost 15 years ago but says we could be seeing the beginning of a shift.
“Hopefully it’s not a crisis and hopefully people with these low-interest rates and great mortgages and great purchasing power didn’t abuse that and get themselves in a pickle situation,” said Shannon Clark, with Rosewood Real Estate Group.
Now, one of the big questions becomes, with all these houses filing for foreclosure, could this bring the housing prices down? The answer to that? Maybe.
“It takes a long time for a property to be foreclosed on and it takes a long time for the bank to release that property to a traditional homebuyer,” Clark said.
“I don’t think it will create a vacuum in prices but it may provide a little more affordability, more options to the potential consumer,” Altobelli said.