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What Does the NewNormal Look Like? DESPITE CHANGING MARKET CONDITIONS, WE DO HAVE SOME CLUES ABOUT WHERE THE REAL ESTATE MARKET IS HEADED.
by Susan Naftulin
t’s the question at the forefront of every real estate inves- tor’s mind: When will the housing market stabilize? On any given week, you might answer that question very differently. Just a few short months ago, no one would have predicted the impact of the Russian invasion in Ukraine and its ripple effects on the economy. Despite these unexpected factors, there is much that we do know and can predict about where the real estate market is headed over the coming months. I
WHATWE KNOW Foreclosures have increased. In January 2022, there were 23,204 foreclosure filings, up 139% from the previous year. Recognizing this spate of foreclosures likely stemmed from those in the foreclosure process pre-pandemic and the resulting back- log, those total foreclosures are still far below pre-pandemic “normal” lev- els. As of March 2022, default notices continue to show a month‑over‑month increase. At the same time, govern- ment agencies and servicers’ loss
mitigation efforts continue to try to slow this trend: The national delin- quency rate fell last October to 3.74%.
THE PREDICTION Foreclosures will continue to reach and exceed totals we have not seen since even before 2018. Housing inventory is still tight, with demand far outstripping supply. Some experts say it’s the lowest in a generation. And that low is not just due to the reluctance of builders to
82 | think realty magazine :: may – june 2022
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