Well, the Covid nightmare is coming to an end; however, the housing nightmare may just be starting. As an REO specialist, I speak with banks all of the time, and the word on the street is: once the moratoriums are lifted, a flood of foreclosures will hit the market, and artificially high home prices across the county will plummet.
So, people are fearful this summer. Homeowners who have not been paying their monthly mortgages and renters who have stopped paying rent, wonder when the hammer will come down. Others who are strategizing their home and investment options want to make the right decision and not get caught in a falling market.
Timing is the key; the adage “buy low and sell high” will likely ring very loud in the impending months ahead. Most banks I talk to today believe the housing market will collapse after the peak Summer selling months are over; some think closer to the end of the year. All believe it depends on how long the moratoriums last and if their current policy of eternal moratoriums will finally end or not. I am telling all of my buyers to wait until the end of the year to buy after the crash. My sellers, I tell them that July will likely be the peak or the high mark of this current seller’s market. Don’t fear, do your homework, and time your decisions wisely!