Scott P. Rogers
Funkhouser Real Estate Group
540-578-0102  •  email
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Tuesday, August 24, 2021
Foreclosures
Several folks have recently asked me if I think we will see hundreds of foreclosed homes hitting the market in Harrisonburg in the coming year as a result of Covid and if that could affect home values.
I don't think we will see a rush of foreclosed properties hitting the market in this area.  Here's why...
  1. Pre-Covid, we didn't see many foreclosures in this area.  Before the housing peak in 2008, we were seeing 90-ish (93, 97) foreclosures per year in Harrisonburg and Rockingham County.  In 2018, there were 85 foreclosures.  So, there are/were typically fewer than 100 foreclosures per year.
     
  2. Home values today are higher than they have ever been in this area.  If a homeowner is facing foreclosure, they should be able to just sell their home and pay off the mortgage in many cases -- rather than face foreclosure.  This was not the case (home values being higher than past sales prices) back in 2009-2014 when we saw more than 150 foreclosures per year.
     
  3. Most homeowners who are working can and do pay their mortgages -- thus avoiding foreclosure.  The pandemic did temporarily affect unemployment rates in this area, but that was not widespread or long lasting.
So - will we start to see some foreclosures taking place this year and next?  Yes.  Will it be a disproportionately larger number that will affect the overall housing market?  I do not think that will happen.