Reason #1 – Change in the Number of Distressed Homeowners
One of the big reasons why prices dropped so dramatically in the first place is because millions of homeowners, hit hard by the recession and falling prices, could no longer afford their mortgage. Facing foreclosure, they attempted to sell only to find that the value of their home was less than they owed on them.
These homeowners are called “distressed” homeowners, and to date there have been millions in this situation. Today, however, distressed homeowners may find themselves in a much better position!
However, according to the National Association of REALTORS, distressed sales are at their lowest point since 2008, when the foreclosure crisis started. This means distressed sales are no longer affecting the market as strongly. Non-distressed sellers today find themselves in a much better position than at any point since the housing crisis began.
“…sellers today find themselves in a much better position than at any point since the housing crisis began.”