Will We See Hundreds Of Covid Induced Foreclosured Homes Hitting The Market In Harrisonburg?
Scott P. Rogers
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...
- 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.
- 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.
- 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.
