Despite the high foreclosure numbers, we do not have a market collapse in Scottsdale, Arizona.

With the large increases in the cost of living in the United States, one of the most serious concerns is about the real estate market, as there is fear that high prices and smaller family budgets will lead many homeowners to fail to meet their mortgage payments, which would inevitably lead to the foreclosure of their properties.

Although we cannot speak of an imminent real estate market collapse at this time, the foreclosure figures and statistics in Scottsdale and Arizona in general, despite being high, do not yet generate great concern among industry experts.

To analyze the current real estate market a bit, ATTOM, perhaps the most prominent real estate data provider, shows us in a report that the number of homeowners starting a foreclosure process is well below the levels observed after 2008, a time we use as a comparison point since there was a significant increase in the number of foreclosures at that time.

So we have a big difference between the current situation and the real estate market collapse, remembering that during the years 2020 and 2021, the government implemented a moratorium that helped many homeowners avoid foreclosure during the COVID-19 era, a time when the figures were exceptionally low. And if we look further back, it is evident that foreclosures in general have decreased significantly.

So in response to the question of why there are fewer foreclosures today despite the rising cost of living; one of the main reasons is that homeowners now have much more equity in their homes compared to 2008, with home values higher than their debts, which provides them with a safety cushion that allows many to avoid foreclosure, as it gives them the opportunity to sell their homes for a good price when facing difficulties with their mortgage payments.

In any case, experts agree that we must be very attentive, as it is undeniable that a higher cost of living is a challenge for many people who wish to keep their homes, but this does not mean that we are on the verge of a wave of foreclosures, as today homeowners have more options to avoid such a process.

We can conclude that despite the increases in daily expenses on items such as food, gasoline, and services in general, the real estate market is not currently approaching another foreclosure crisis, as today homeowners are in a much stronger financial position than during the 2008 crisis, thanks to significant equity inherent in the increase in the price of their homes.

AvailableForeclosures:

Scottsdale: 15 homes available.

By Elías DaSilva | 28 de octubre de 2024.