Housing Market Remains Stable Despite Uptick in Foreclosures and Bankruptcies

Recent news coverage highlighting an uptick in foreclosures and bankruptcies might be causing concern, particularly for those considering entering the housing market. However, it’s important to recognize that these increases do not spell disaster for the housing market.

Foreclosure Rates: A Contextual Understanding

The past few years have seen historically low foreclosure rates, largely due to the forbearance program and other financial relief measures implemented in 2020 and 2021. These initiatives were crucial in helping homeowners weather the economic challenges of that period.

With the end of these programs, a rise in foreclosures was anticipated. However, this increase should not be interpreted as a sign of impending market collapse.

The accompanying graph, based on ATTOM data, traces foreclosure filings from 2005 onwards, illustrating a significant reduction in foreclosures since the 2008 housing market crash.

Current foreclosure rates are gradually returning to pre-pandemic levels, yet they remain substantially lower than the 2008 peak. Additionally, the high equity levels in American homes today provide a buffer, enabling homeowners to sell rather than face foreclosure.

Bankruptcy Trends: A Measured Perspective

The graph below demonstrates that, despite the economic strain on various industries and small businesses during the pandemic, there hasn’t been a dramatic surge in bankruptcies. The slight increase in bankruptcies is nearing 2021 figures, but this is not a cause for concern.

The lower bankruptcy rates in 2021 and 2022 were partly due to extensive government financial support during the pandemic. Comparing this year’s data with 2019’s, it’s evident that current bankruptcy rates are still significantly lower than pre-pandemic levels. This trend, coupled with the foreclosure data, suggests the housing market is not on the brink of a downturn.

Bottom Line

In interpreting these trends, it’s essential to focus on the data. While there is an uptick in foreclosures and bankruptcies, these indicators are not at levels that would typically precede a housing market crash. The current situation calls for an informed understanding rather than alarm. Reach out to Countryside Homes NJ and RE/MAX Select if you’d like to discuss how these recent trends may be affecting our local real estate market.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!