8 Reasons Why There Will Be Very Few Distressed Sales
| Here are the 8 reasons why we will see so few distressed sales across our country according to Logan Mohtashami, a housing analyst with Housing Wire. · According to the Federal Reserve mortgage debt payments as a percent of disposable incomes are at all-time lows and this data goes back to 1980. · According to the Federal Reserve household debt service payments as a percent of disposable incomes are at all-time lows as well. · Over 95% of all current mortgage holders have a fixed-rate mortgage, thus very few homeowners will be forced to sell their home like what happened in Denver beginning about 2005. · The average Fico score for borrowers for several years has been about 760 on average. · From 1985-2007 average housing tenure was running at 5 years. This means people had less equity when they moved to their next home. · Since 2008 housing tenure is north of 10 years. Thus, homeowners today have more equity in their homes than ever before. In fact, homeowners today have $23 TRILLION in home equity. · Because homeowners have incredibly low-cost debt and good cash flow they are not motivated to sell their home for a discount. · Logan said, “stable demand, low mortgage rates and low inventory, along with unmotivated sellers, lead to a perfect storm of price stickiness which could mean that even if mortgage rates rise, home prices may not fall as far as people believe they would.” |