Let’s be real with each other for a second about affordability. Because you deserve someone who will be honest and transparent about what’s going on, especially if you’ve got a move on your mind.

Here’s the full picture of what’s happening and why. The good – and the bad. So, you know what it truly means for your move. Because while rates are certainly a big part of affordability, they’re not the only factor at play.

Mortgage Rates Have Been Rising

After a year or more of rates trending down, they’ve started to climb again. And, if you’re looking to buy, that’s not what you want to see. But it has happened. And here’s why.

Uncertainty is the enemy of mortgage rates.

And with lingering global uncertainty, ongoing tensions in the Middle East, and inflation refusing to fully cool off, there’s a lot that’s having an effect on rates. Colin Robertson, Founder of The Truth About Mortgage, put it plainly:

“You can’t have $100 a barrel oil and not expect inflation to rise, which translates to higher bond yields and mortgage rates.”

Take a look at the graph below. It uses data from Mortgage News Daily to show just how much all of those factors have had an impact:

It’s possible. But it all depends on how the ongoing geopolitical conflict plays out and whether inflation continues to run hot afterwards – and for how long.

Rates probably aren’t heading down until both of those things improve. And even when that does happen, experts agree rates likely won’t be dramatically lower – maybe in the low to mid-6s. That’s the reality, and it’s worth knowing.

So, should you wait for lower rates? The general consensus is, if you can afford to buy and you find a home you like, it’s still worth it. Because no one knows for sure when rates will start to come back down – and how long do you really want to put your life on hold?

Wages Are Outpacing Home Prices

You’ve probably heard that inflation is making everything more expensive, and there’s no shortage of headlines about the cost-of-living outpacing paychecks. It’s a legitimate concern. And maybe you’re feeling the pinch yourself. But here’s what doesn’t make the headlines. It’s not all bad news.

Data from the Federal Reserve Bank of Atlanta and Redfin shows wages have actually been growing faster than home prices.

• Recently, wages have been increasing at around 4% year-over-year. 
• And home price growth is closer to 2% year-over-year.

As a buyer, you want your income to rise faster than prices because that helps make your purchase more manageable financially, and it quietly chips away at the affordability challenge over time. That’s exactly what we’re seeing lately. And every little bit is going to help.

A big reason wages have been gaining ground on home prices? Home prices have actually stayed pretty steady.

Existing Home Prices Have Held Steady

Check out the graph below. It shows home price data from the National Association of Realtors (NAR) over the past 4 years. Notice anything? There’s been no dramatic runup, and no crash either. Just relative stability and slow growth:

Part of what’s keeping prices this stable is that buyers finally have more choices. That means less competition, more negotiating power, and more time to find the home that actually fits your life, not just the one you had to grab before someone else did.

And that gives you a chance to hopefully find something that works for your budget, even with today’s rates. At the same time, you’re not losing ground pricewise while you take time to make a careful decision.

Bottom Line

Yes, rates have been volatile, and global instability is keeping them from settling down anytime soon. There’s no sugar coating that. But the full picture of affordability is more nuanced than the headlines suggest.

Want to run the real numbers for your situation? Let’s talk. Reach out and let’s set up a quick, no-pressure conversation.

The good news is that you do not have to choose between taking your summer trip and finding your dream home.

With the right strategy and a great team in your corner, your home search can keep moving forward smoothly, even while you are relaxing by the pool. At Linda Craft Team, REALTORS®, we use modern technology, local market expertise, and a hands-on approach to help buyers stay ahead of the market, even when they are out of town.

Here is how we make sure you never miss an opportunity while you are away.

Live Video Tours Bring the House to You

One of the biggest worries for buyers on vacation is that the perfect house will hit the market while they are gone. In a busy summer market, great homes can still move quickly.

If a fantastic property pops up while you are away, you do not need to rush home or skip the house entirely. Our team can go to the property for you.

We can do a live video walkthrough or record a detailed, high-definition video tour. We do not just show you the pretty kitchen. We check the inside of the closets, show you the view from the backyard, and capture the small details that matter. It will feel like you are there in person.

You can also start browsing before your trip by using our Triangle home search to save properties, explore neighborhoods, and keep an eye on homes that match your wish list.

Digital Contracts Keep Things Simple

Gone are the days of needing to find a printer or fax machine while traveling. Today, the paperwork process can be handled digitally.

If we find a home you love and you are ready to make an offer, we can help you move quickly. Our team will prepare the contract and send it straight to your smartphone, tablet, or laptop. You can review the terms and sign the documents online from wherever you are.

It is fast, secure, and convenient, which is especially helpful when timing matters.

For more helpful resources before you begin, visit our buyer resources or learn more about the home buying process.

We Negotiate on Your Behalf

Making an offer on a house involves a lot of moving parts. You need to understand the seller’s timeline, evaluate the price, review contract terms, and respond quickly when new information comes in.

When you work with Linda Craft Team, REALTORS®, you can truly relax because we handle the heavy lifting. We act as your local eyes, ears, and voice. We communicate with the listing agent, gather important details, help you understand your options, and negotiate terms that support your goals.

We keep you updated every step of the way, so you are always in the loop without having to manage every detail of the process while you are away.

Local Knowledge Matters, Even From Afar

Technology makes it easier to tour homes and sign paperwork remotely, but local expertise is what helps you make a confident decision.

Our team knows the Raleigh area and the surrounding Triangle communities. Whether you are searching in Raleigh, Cary, Apex, Wake Forest, North Raleigh, or another Triangle-area community, we can help you understand the location, lifestyle, commute, nearby amenities, and long-term fit.

That means you are not just seeing a house on a screen. You are getting real guidance from a team that knows the local market.

Get the Best of Both Worlds

Your summer vacation is important, and you deserve a break. But you also deserve to find a great home without feeling like you are falling behind other buyers.

By letting our team manage the details, you get the best of both worlds. You can enjoy your time off while knowing that experienced local real estate professionals are actively helping you find your next home.

If you have a trip planned but are still serious about buying a home this season, let us help you build a game plan.

Contact Linda Craft Team, REALTORS® today to keep your home search moving while you enjoy your summer.

Call or Text: 919-235-6313
Office Phone: 919-235-0007
Email: service@lindacraft.com
Office: 7300 Six Forks Rd, Raleigh, NC 27615

When you put your house on the market, you don’t just want it to sell. You want it to sell fast. But the thing is, nationally, it’s taking a little longer to sell lately. And that slowdown can feel frustrating if you want a fast process. Here’s what you need to realize.

In every market right now, there’s one clear exception:

Well-priced, well-presented homes are still selling, and it’s often faster than you’d expect.

If you can tap into that, you can still set yourself up to move quickly, too. Here’s how to get it done.

How Long It Takes To Sell Today

According to Realtor.com, homes are selling in about 52 days right now. That’s how long the process takes from the day it hits the market until closing day.

And while that may sound slow to you, it’s not slow. It’s normal.

That’s because it’s pretty much right in line with what it was during the last normal years in the market (see 2018-2019 in the graph below):

It just feels slow when you’re eager to move – or when you think back a few years to when homes seemed to sell almost instantly.

But here’s what matters most. The market is normalizing. Not at a standstill.

This is the norm for timing from start to finish. You may have an accepted offer in hand even faster than this.

Markets Where Homes Still Sell Quickly, Even Now

Zillow says the typical home will go “pending” or “under contract” in 19 days. Some homes even see it happen in as little as 7 days. It just depends on where you are – and how you prep your house.

So, don’t let the slowing pace of sales stress you out. Homes can still sell fast, if they’re positioned right.

Just to show you, here’s a quick look at some of the markets that are moving faster than the norm, according to Zillow (see map below). This’ll show you how different it can be based on where you live.

The key things you need to remember when looking at this visual:

• It varies a lot based on where you live. Within the same state, individual neighborhoods or pockets may sell much faster than the norm.
• Even in slower moving states, you can still sell quickly. As the map shows, in those places there are still homes that go under contract in as little as a week.

So don’t worry about if your state made either list. As Orphe Divounguy, Senior Economist at Zillow, says:

“The cream of the crop is still selling fast, even in markets that have slowed considerably. . .”

The Big Reasons Some Homes Sit, and Some Sell Fast

And here’s the big secret. While location can definitely play a role, it’s not just about location. It’s about strategy.

Today’s buyers are paying attention to condition. They’re comparing photos, upgrades, layout, location, and price. And they’re choosing homes that feel move-in ready and well worth the value.

The homes that check those boxes? They’re not sitting for long – no matter where they are.

As the Wall Street Journal (WSJ) explains:

“. . . some homes are still flying off the shelves. These houses are often in the Midwest or Northeast, where the lack of new construction keeps a lid on supply. Certain homes in other markets are selling quickly, too, often when a home is move-in ready.”

Because in any market – hot or not – if a home is overpriced, needs too much work, or just doesn’t meet current buyer expectations, it’s not going to sell. 

In this market, the sellers who win are the ones who get real about their house. They’re honest about how their home compares to other listings, realistic about price, and they work with an agent who truly understands today’s market and what it takes to sell.

When your agent knows how to price strategically, spotlight the strengths of your home, and move quickly when the market gives clear signals, that’s when the results follow.

Bottom Line

Today’s housing market rewards the right strategy. Because even in a slower area, the homes that are priced realistically and positioned well are still selling – sometimes faster than you may expect.

Let’s connect if you’re ready to make yours one of them.

According to Google Trends, online searches for down payment information recently hit an all-time high. And that’s a clear sign more buyers are trying to figure out what they really need to save before making a move (see graph below):

If you’re wondering the same thing, you can always turn to the internet for answers. But a lot of the time, it’s better to ask a local expert. Because here’s what a pro would tell you.

The 20% Down Payment Myth

The idea that you need 20% down to buy a home is one of the biggest misconceptions around the homebuying process. And the data debunks the myth.

While there are benefits to putting that much money down, most first-time buyers put down far less.

Here’s why. Unless it’s stated by your lender, you typically don’t have to have a 20% down payment. There are even some loan options designed to help you get into a home with a much smaller upfront cost. As the Mortgage Reports explains:

“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals. If you don’t have a large down payment saved up, don’t worry—there are plenty of options available, and you don’t need to put down the traditional 20% . . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . .”

For example, FHA loans allow down payments as low as 3.5%, while VA and USDA loans offer zero down payment options for qualified applicants, like Veterans.

And those options are just one reason so many first-time buyers are able to buy without a 20% down payment.

What Buyers Are Actually Putting Down

So, if buyers aren’t doing 20%, how much do they actually put down?

According to the National Association of Realtors (NAR), the median down payment for first-time homebuyers is only 10%. That’s half of what you probably expected.

That means if you’re aiming to save 20% because you think you have to, you may be setting a timeline that’s longer than necessary.  

And here’s some more good news. It’s not only that you may be able to buy with less money down than you thought, but there are also options to help you get to your down payment goal even faster.

Why You Should Look into Down Payment Assistance Programs

There are a lot of programs designed to help you save for a down payment – and they can make a big difference in how fast you hit your savings target. Unfortunately, buyers don’t realize how many there are, or that they may qualify for help.

Research from Realtor.com shows almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below): 

And that’s another big miss holding would-be buyers like you back.

In the U.S., there are over 2,600 homeownership programs available, many offering significant financial support. As Down Payment Resource shares:

“With an average benefit of $18,000, down payment assistance (DPA) remains one of the most essential tools for addressing the nation’s affordability challenges. Programs continue to expand in scope, serving a broader range of incomes, property types and borrower needs, including first-generation, military and repeat buyers.”

Imagine how much further your savings could go with an extra $18,000 you can use to buy. In some cases, you may even be able to stack multiple programs, giving what you’ve saved an even bigger boost.

Bottom Line

The simple truth is: most first-time buyers don’t put 20% down. And if you’ve been waiting to buy until you have that saved, you may be setting a timeline that’s longer than necessary.

To find out what you really need to save and if you qualify for any help, connect with a trusted lender who can walk you through your options. You may be able to buy sooner than you thought.

We call it the “School is Out” rush. If you have been thinking about selling your home, right now is the absolute sweet spot to put your property on the market.

Here is why listing your home in late May gives you a major advantage and how our team can help you capitalize on this highly active season.

The Moving Math for Families

To understand why late May is so important, you just have to look at the calendar from a buyer’s perspective.

Families with children strongly prefer to move during the summer. They want to get settled, unpack their boxes, and learn their new neighborhood before the new school year starts in August.

A standard real estate closing takes about 30 to 45 days. If a family wants to close on a house and move in by July, they need to write a winning offer in June. That means they are aggressively touring homes and looking for the perfect match right now in late May.

If your home is not on the market while they are looking, you will miss out on this huge group of buyers.

These Buyers Are Highly Motivated

The buyers who are house hunting right now are not just casually browsing to see what is out there. They have a strict deadline.

When buyers have a clear goal and a tight timeline, they tend to be much more decisive. They are usually fully pre-approved by a lender, focused on their must-haves, and ready to make strong offers when they find the right house. As a seller, this is exactly the type of serious buyer you want walking through your front door.

Beating the Late Summer Lull

Some sellers assume they can just wait until July to list their home. While houses certainly sell all summer long, the market naturally slows down a bit toward the end of the season.

By late July and August, people go on family vacations to escape the heat. The focus quickly shifts from house hunting to buying backpacks and getting ready for the fall semester. Listing your home right now in late May ensures you capture the largest pool of eager buyers before those late summer distractions begin.

Let Our Team Guide Your Move

If you are worried that you procrastinated and missed the early spring market, do not panic. You are actually in the perfect position to take advantage of this late May surge.

You do not need months of preparation to get your house ready. Our team can help you fast-track the process. We know exactly what small tweaks will make your house look great and how to price it perfectly for today’s buyers.

Whether you are looking to sell your current property or you are ready to buy a new home this season, reach out to us today. We are here to expertly guide you through every step of a successful summer move.

Linda Craft Team, REALTORS 

7300 Six Forks Rd, Raleigh, NC 27615

North Carolina License #140967

PH: (919) 235-0007 EMAIL: service@lindacraft.com

There’s a lot of uncertainty right now and that’s leading to some dramatic headlines. And if you’re thinking about buying a home, that can make you feel a little less sure about your decision.

A recent study by CNBC asked homebuyers what they’re most worried about, and three themes kept coming up again and again:

• Mortgage rates
• The number of homes for sale
• Home prices

But a lot of what you may be hearing on those is based more on misconceptions. Not facts. So, let’s break it down and separate fact from fiction.

Misconception #1: “I’ll Just Wait, Because Mortgage Rates Are Going To Fall Dramatically”

One idea doing its rounds on social is that mortgage rates are going to drop dramatically soon. So, it’s better to wait to buy.

But is that really what’s expected?

While mortgage rates have come down a bit in the last few weeks, forecasts don’t show a major drop ahead. The most likely scenario is that rates stay somewhere in the low 6% range this year. 

And that’s not a big change from where rates are now (see graph below): 

Of course, this depends on where inflation and the economy go from here. But, based on what we know today, waiting for a big drop in rates may not work out the way some people hope. As U.S. News explains:

“Mortgage rates aren’t expected to change much over the next several quarters . . .”

Not to mention, even with rates where they are today, it’s already more affordable than a year ago. So, even if they don’t change much, it’s still better than it was.

Misconception #2: “There Are Too Many Homes for Sale Right Now”

You’ve probably heard inventory is up. And nationally, it is. The number of homes for sale is 8% higher than this time last year. But that’s not a bad thing. In fact, it’s one of the reasons buyers have a bit more breathing room right now.

The problem is the headlines are making something good, sound bad. They’re focusing on how this is the most inventory we’ve had since 2019 or how many homes builders are building. And that can make it sound like the number of homes for sale is rising too far, too fast.

But that’s not what the bigger picture shows.

Data from Realtor.com proves that, even though inventory is up compared to last year, it’s still nearly 14% lower than it was during the last normal housing market (2017-2019):

While it can vary a lot based on where you live, only 9 states have more inventory than pre-pandemic today. That’s a key reason why there still aren’t enough homes for sale to trigger something like the crash back in 2008.

Misconception #3: “Home Prices Are About To Crash”

You’ve probably seen this one, too. The confusion is coming from the fact that some metros are experiencing slight price declines. And influencers are running with that and saying prices are crashing. But that’s not the reality.

Most areas are seeing prices rise, not fall. And that’s because:

• Many homeowners aren’t selling because they don’t want to give up the low mortgage rate they locked in a few years ago. And that’s keeping a lid on how much inventory can grow.
• Since inventory is still below pre-pandemic norms, there aren’t enough homes for sale to cause a price crash.
• And even in markets with more inventory, some sellers are choosing to pull their homes off the market instead of cutting prices.

And those are 3 big reasons prices aren’t headed for a crash. 

And even in the markets experiencing mild declines, the drops aren’t enough to cancel out the big gains most homeowners have seen in the last 5 years (see graph below):

That’s not a crash. That’s just prices moderating after a few record-breaking years.

Bottom Line

Online posts are going to make things sound worse than they are. If you want a true, data-bound look at what’s really happening in today’s market, lean on a real estate agent.

Let’s connect so you have someone to separate fact from fiction today.

Spend about 5 minutes online searching for news about the housing market, and odds are you’ll see something pop up about home prices. You may even stumble onto social media influencers saying we’re headed for a crash. Let’s get you the context you need.

The truth is prices are going to vary depending on where you live. But they’re not crashing.

Here’s what you need to know.

The Local Perspective: Home Price Trends by Area

The biggest thing feeding into the confusion online is how different home price trends are by area right now. Take a look at this data from ResiClub and Zillow (see graph below).

About half of the largest metros are seeing prices go up.

The other half are seeing some declines.

Unfortunately, the online chatter only focuses on the markets where prices are down – and that makes it sound like something bigger is happening.

But, as you can see in this graph, that’s only one side of the story. The full picture is different.

The National Perspective: Moderate Price Growth

As a country, when you average it all together to get a true baseline, one thing becomes clear, home prices are still net positive at the national level.

According to the Redfin, national home prices were up about 1% year-over-year in February. So, what we’re seeing right now isn’t a collapse. It’s a market that’s normalizing after a period of unusually fast growth. And that impacts some local markets more than others – particularly those where prices rose too far, too fast during the pandemic. 

A true crash, like what happened in 2008, would mean prices dropping sharply across the entire country. That’s just not what the data shows today. And it’s not where things are going either.

Experts Agree This Isn’t 2008

In fact, Fannie Mae surveyed over 100 housing market experts to ask their opinions on where prices are headed from here. And the experts agree, nationally, prices are expected to keep rising over the next five years: 

That rise will be moderate, particularly this year, but the trend is clear. Nationally, prices are forecast to grow every year now through at least 2030 – and that’s normal. Daryl Fairweather, Chief Economist, at Redfin explains:

“House prices aren’t going to fall on a national scale any time soon—and that’s actually a good thing. It’s normal for house prices to rise gradually over time . . .”

That’s why even in the select areas where prices have dropped slightly this year, the decline is expected to be temporary. According to that same quarterly Fannie Mae survey mentioned above, 85% of the experts say the markets that are seeing mild declines right now will return to positive price growth before the end of 2027.

The main takeaway? This isn’t a crash. And prices aren’t expected to fall nationally. If anything, the few areas experiencing declines are expected to rebound in the next year or so.

Bottom Line

It’s easy to get caught up in headlines that make it sound like something big is about to happen. But don’t be fooled. The housing market isn’t crashing. It’s just shifting.

The key is understanding what’s actually happening in your market, so you can make the right move for you. Let’s connect if you want the local perspective.

There’s often a gap between a flawless online listing and what you actually experience in person. We call this the reality gap. While technology is a powerful tool for your search, you still need a human filter to make sure the dream home on your screen matches the reality of the property.

Here is how we combine the best of modern technology with expert local guidance to help you find the right home.

Technology is Your Visionary

We love the new digital tools available to buyers today. Artificial intelligence and virtual staging are incredible for helping you visualize a space.

If you are looking at an empty living room online, technology can show you exactly how it would look with modern furniture. If you are looking at a house that needs some love, digital tools can help you imagine the space with a fresh update. These tools make the early stages of your search faster and more imaginative. They help you see the hidden potential in a property.

We Bring the Reality Check

An app cannot smell a musty basement. A virtual tour cannot hear the noisy highway right behind the backyard fence. A photo filter will not spot a dated electrical panel or an aging roof. And a fresh coat of paint doesn’t fix what’s underneath.

Even the most advanced AI tools still rely on data and assumptions. They can’t experience a home the way you can in person.

That is where our team steps in. We provide the boots on the ground audit that technology simply cannot do. We walk through the property with you and look for the physical details that matter most to your safety and your wallet. We make sure the house is just as solid as the pictures suggest.

Where Human Expertise Wins

Buying a home is ultimately a human transaction, and that requires a human touch. Your apps can give you raw data, but our team gives you the actual neighborhood story. A digital tool can show you the beautiful potential of a fixer-upper, but we can tell you the realistic local costs to make those renovations happen.

Beyond the house itself, we tap into our local network to uncover homes before they ever hit the major real estate websites. You can explore some of these opportunities through our featured listings.

When it comes time to make an offer, algorithms cannot negotiate. Our team navigates the complex human elements of the deal. We find out what is motivating the seller and negotiate creative solutions like closing costs or rate buydowns to get you the best possible terms. Understanding your financing options ahead of time—like reviewing our mortgage resources—can also give you a stronger position when you’re ready to act.

Let Us Guide You Home

Technology is a fantastic way to start your homebuying journey, but it takes a dedicated team of experts to finish the deal safely. You can definitely use your favorite apps to browse and dream, but you need a professional to help you navigate the complexities of the current market.

If you’re ready to find a home that truly lives up to what you see online and avoid the surprises that don’t, start your search with our home search tools or reach out to our team today. We would love to help you find exactly what you are looking for.

If you are picturing a moving truck in your driveway this July, it might feel like you have plenty of time. However, a successful move usually takes longer than people realize. To enjoy a move that feels like a milestone rather than a scramble, you have to work backward from your goal.

If you wait until summer actually arrives to start the process, you will likely find yourself rushing to keep up. Here is why a successful summer move actually begins in April.

Step One: The Preparation (2 to 4 Weeks)

Before the first buyer walks through your door, your home needs to look its absolute best. Buyers today are looking for spaces that feel well maintained and move in ready. This phase involves decluttering, touching up paint, and handling those small repairs that are easy to overlook.

This is also when we discuss staging. Whether we are rearranging your current furniture or bringing in professional pieces to highlight your home’s potential, staging is a key step in helping buyers visualize themselves in the space. Once the house is polished and staged, our team brings in a professional photographer to create your marketing materials.

Note: If you are planning more substantial updates like new flooring, major landscaping, or full home professional staging, your preparation phase will need more time. Reach out to us for a consultation so we can help you estimate a realistic start date based on your home’s specific needs.

Step Two: The Market and The Search (30 Days)

The real estate market is more balanced right now. This means homes are not necessarily selling in minutes like they did a few years ago. It is normal for a properly priced home to be on the market for about 30 days before the right offer is secured.

This 30 day window is also when your own home search moves into high gear. While we are busy marketing your current property, we are also touring homes with you to find your next one. Ideally, we want to align your purchase with your sale so you only have to move once.

Keep in mind: The time it takes to find a buyer can vary depending on your specific neighborhood and price point. Additionally, finding your next home can happen in a weekend or take several weeks. Starting early ensures you have the flexibility to find the right match for both.

Step Three: The Closing Process (30 to 45 Days)

Accepting an offer is a huge milestone, but the journey continues from there. Once a contract is signed, the closing process begins. The buyer will need time to schedule a home inspection, and their lender will need several weeks to order an appraisal and finalize the mortgage paperwork.

If you are also buying a home, our team coordinates both closings to happen back to back. This standard waiting period usually takes another 30 to 45 days to ensure both transactions are legally and financially sound.

Pro Tip: In a balanced market, most purchase offers are “contingent” on the sale of your current home. Managing this overlap is where having an experienced team is most valuable.

Doing the Math

When you add these steps together, a smooth and successful sale takes about 90 days from our first conversation to the day you hand over the keys.

If you want to be unpacking boxes in your new house by mid July, the clock is already ticking. To hit that target, your 90 day countdown starts right now in mid April.

Let Our Team Guide You

The secret to a stress free move is having a clear plan and a great team in your corner. You do not have to figure out this timeline on your own. We know how to manage the details, prioritize your preparation, and coordinate the search for your next home so the pieces of the puzzle fall into place.

If you are thinking about selling your current property and looking for a new home this summer, the best time to start planning is today. Reach out to our team to start the conversation. We would love to help you make your summer move a reality.

The post The Summer Move Countdown: Why Your Timeline Matters Right Now appeared first on Dakno Content Blog.

Foreclosures are ticking up. And that may make your mind jump straight to thoughts of 2008 – specifically to what happened to the market during the housing crash. So, let’s do exactly what your brain already wants to do, and see if there’s any connection there.

The simple truth is foreclosure filings are rising. But they’re nowhere near crisis levels. And that’s not where they’re headed either. Here’s why.

Take a look at serious delinquencies – loans where the homeowner is more than 90 days late on their mortgage payments.

While those have increased slightly, data from the New York Fed shows they still remain low. And they aren’t anywhere close to levels seen when the market crashed (see graph below):

Right now, about 1% of mortgages are seriously delinquent. That’s only 1 in 100.

In the years around the crash, they were up around 9%. That’s 1 in 11.

That’s a big difference.

And it’s important to remember not all delinquencies even become foreclosure filings. Some homeowners who are falling behind will work out repayment plans with their banks and lenders because banks don’t want to see a wave of foreclosures either.

That’s why foreclosure numbers are even lower than delinquencies. ATTOM shows only 0.3% of all homes are currently going through a foreclosure filing. And those won’t even all go to a full foreclosure. That’s not a wave. That’s a ripple at most.

If People Are Falling Behind on Payments, Why Aren’t There Even More Foreclosures?

And maybe you’re wondering, if people are struggling financially, why aren’t there more foreclosures? Here’s the easiest way to answer that.

When households feel financial pressure, they tend to prioritize their mortgage payment above almost everything else. Because the last thing they want to lose is their home.

Data from the New York Fed shows serious delinquencies have risen more for credit cards and auto loans (the blue and green lines). But mortgage delinquencies and home equity lines of credit (borrowing against the value of your home) aren’t seeing the same big uptick (the yellow and orange lines). They’re a lot more stable overall.

In other words, people may fall behind on other debts, but they fight hard to keep their homes. And, in today’s housing market, they’re also in a strong equity position to do so.

Home Equity Changes Everything

Many people have built significant equity over the past several years. And that creates options. As Daren Blomquist, VP of Market Economics at Auction.com, explains:

“Distressed homeowners… many times they still have equity in their homes. There’s an opportunity for them to sell that home, avoid foreclosure, and walk away with equity.”

That’s a major difference from 2008. Back then, many homeowners owed more than their homes were worth. And selling wasn’t an easy solution. Today, for many people, it is. And even in situations where equity isn’t enough, homeowners are encouraged to contact their loan servicer early to explore alternatives to foreclosure.

Bottom Line

Are foreclosure filings rising slightly? Yes. Are they anywhere near crash territory? No. And homeowners today have far more equity and flexibility than they did during the crash.

If you’re concerned about what you’re seeing in the headlines, the best move isn’t panic, it’s perspective. And the data right now says this isn’t 2008 all over again. If you’re dealing with foreclosure, we can help. Visit our site at https://www.lindacraft.com/foreclosure.