2021 Real Estate Prediction

Written by Posted On Monday, 16 November 2020 08:34

As a home buying company, we have already seen an increase in people needing to sell their homes because they have been in forbearance for months and are now in a place where they can't pay the lump sum that is coming for all the back due payments when their forbearance ends.  I believe this is just the tip of the iceberg and that we will begin to see a huge increase in foreclosures in the housing market in 2021 as forbearance periods end.  

Most people who lost jobs during COVID and applied for forbearance will have a hard time paying all those back due mortgage payments as one large payment to get caught up. Unless banks decide to change their strategies and allow people to defer their payments to the back end of their mortgage, many people will have no other choice but to sell or allow the home to go into foreclosure.  We have encountered a few mortgage lenders allowing people to do this but most will not.  If we do see a huge increase in foreclosures in 2021, real estate prices will drop and it could be a similar situation to the 2008 real estate crash.  

What do you think the housing market will look like in 2021? I'm interested in hearing other thoughts from Real Estate Professionals.  Share your predictions in the comments.

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