February National Market Update #2
On a national average, homes have increased in value by $57,000 year over year, in California that number is $119,000 according to CoreLogic. What would you do with that much extra money and having that much equity in your home can give you a lot of options, but it affects the market as well.
All of this equity going around has helped people climb out of forbearance, and forbearance numbers have finally dropped below 1 Million according to Black Knight with the status of banks fluctuating, Freddie Mac, Fannie Mae, MBA, and NAR all project interest rates to rise steadily throughout 2022, as high as 4%. Maiclaire Bolton-Smith Senior Leader, Research and Content Strategist of CoreLogic says this. “We may see a little bit of an uptick in the foreclosure rate in 2022. Just an uptick though, from an extraordinarily low level, we’re not expecting to see big increases.” But the consensus is that 2022 holds a housing market that remains strong.
She goes on to say “We expect delinquency rates overall on home mortgages to actually continue to remain quiet, quite low.” So how does this relate to buyers and sellers. Well, make sure you know what the market looks like so you know what to expect when you are deciding if now is the right time for you to buy or sell!