What is the difference between market conditions in 2008 and 2024?
There are many headlines, including foreclosure foreshadowing and housing crashes, that might have buyers and sellers feeling apprehensive about making real estate decisions in 2024. Do not worry; these are different times. I want to help today’s buyers and sellers look beyond the headlines and understand the differences between then and now.
First, let’s discuss the context of increased foreclosure numbers. The reported increase in foreclosure rates can seem alarming when compared to the low figures from just a few years ago. During 2020 and 2021, through a combination of moratoriums and forbearancemillions of homeowners avoided foreclosures, this resulted in less foreclosures during that period.
When these measures concluded, foreclosure activity resumed, contributing to the current increase. It’s important to note that this increase was expected doesn’t indicate a crisis or housing collapse.
Moving on to an accurate comparison of the housing crisis in 2008 and today’s conditions.
Data from ATTOM, a property data provider, reveals a very stark contrast in foreclosure activity between then and now. Today’s foreclosure rates are substantially lower compared to the peak years following the housing crash. In 2023, there were approximately 357,000 foreclosure filings, which is a lot less than the 1 million filings annually seen during the crisis. Recently, Bankrate observed, “In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes.” In 2024, homeowners will possess more equity in their properties, is a buffer against foreclosure. Equity helps ensure that it is not a systemic crisis, unlike the conditions in the aftermath of the 2008 housing bubble.
Context is everything in real estate. While foreclosures are on the rise, they are not approaching crisis levels and do not foreshadow a crash in home prices. To best understand the right course of action to take in your particular case, contact me to discuss your real estate plans. There is no need to delay in fear of a crisis. Let’s take this next step together.
Want to read more market updates like, What is the difference between market conditions in 2008 and 2024? Click here.
