I have talked to a few people who are waiting for foreclosures to hit the market. There are a few out there but even though the pandemic caused job loss homeowners are getting caught up
on mortgages and there are forbearance programs that extend the length of the mortgage.
This isn’t like the last recession or like the housing market crash. There are a few differences. Most importantly more homeowners have a lot more equity. That means people who are behind on payments may even be able to sell before they go into foreclosure. Home prices are going up.
During the great recession, home prices went down and there were many people who could not make payments but the value of their home was going down and they ended up owing more money on it than they could sell it for.
The foreclosures I have seen are not what I would consider “bargains”.
I don’t think the pandemic will result in a foreclosure crisis at least not in owner-occupied residential real estate.
There is a glut of commercial real estate and I am starting to notice more rental properties coming on the market. It is possible that being a landlord isn’t as attractive as it once was due to various eviction moratoriums and in St. Paul, there are stricter standards for evicting tenants.
Rental property owners also have equity and now is a great time to sell any type of residential real estate.