I hear many foreclosures might be coming to the market soon. Won’t that drive prices down?Some are concerned that homeowners who entered a mortgage forbearance plan might face foreclosure once their plan ends. However, when you analyze the data on those in forbearance, it’s clear the actual level of risk is quite low. Ivy Zelman, CEO of Zelman & Associates and a highly-regarded expert in housing and housing-related industries, was very firm in a podcast last week:
“The likelihood of us having a foreclosure crisis again is about zero percent.”With demand high, supply low, and little risk of a foreclosure crisis, home prices will continue to appreciate.