|January overall delinquency rate was 3.5%
After the Great Recession, we all became very familiar with the term’s bankruptcy, foreclosure, and even short sale. But since then the real estate market has done some fantastic recovery. So much so that mortgage delinquencies at the start of 2020 were very low. The nation’s overall delinquency rate was 3.5% in January.
So here are some stats I want to share with you.
- In January 3.5% of home mortgages were in some stage of delinquency.
- This is the lowest rate in more than 21 years.
- 90 days or more past due including loans in foreclosure was 1.2% in January.
- The share of mortgages in some stage of the foreclosure process was 0.4% in January.
- Historically, January 2010 was the peak at 12%.
An interesting curve to watch will be the results of the large unemployment which has happened during the national COVID-19 shutdown and if there will be a rise in any of the percentages based on that factor. Hopefully, the economic stimulus that was sent out to taxpayers will assist in helping them pay their mortgages as well as other bills if they are unemployed.
COVID-19 and Natural Disaster Challenges
|COVID-19 natural disaster challenges
Another challenge is that the COVID-19 pandemic is impacting post-disaster recovery. With the warmer weather, we usually see a rise in severe weather that will sweep through the eastern states from Florida to Washington, D.C. And with these storms, there will be tornados. Recently in Tennessee, Mississippi, Georgia, South Carolina, and Alabama approximately 23,448 structures were potentially damaged. The most damaging tornado was an EF3 with wind speeds up to 145 mph in Chattanooga, TN.
The COVID-19 shutdown is making recovery more challenging than normal. Experts are concerned that nonessential business shutdowns will drastically hinder the ability of towns damaged by severe storms to recover with reconstruction.
The good thing is that with the shutdown the building materials are readily available for reconstruction. But various new measures will need to be taken due to COVID-19. The biggest impact will be on homeowners who have destroyed homes. Not only will they have reconstruction costs but where will they live, eat, sleep, until the nonessential shutdown has been lifted?
Despite all of this, real estate, especially in our area is chugging right along. In my latest newsletter, I included some local stats. As of April 14th, there were 3,463 active homes for sale, 1,459 contingent contracts, and 729 pending contracts. And the closed homes for March were 1051 which was almost double February’s 839.
So, yes there may be a bit of fallout from the COVID-19 pandemic across the nation but experts are predicting that real estate will be the driving factor that will keep the economy churning until we can all get back to work. Some states are starting partial openings already. We will see what happens on May 1st.
Victoria Cottle is a Realtor® in the Greenville South Carolina area and if you, a friend, or a family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.
Please contact Victoria Cottle by email firstname.lastname@example.org or call (864) 275-3953 for your real estate needs in the Upstate of South Carolina!