Why Today's Foreclosure Numbers Are Nothing Like 2008
If you’re looking to buy or sell a home in the Philadelphia area, it’s important to understand the current state of the market. The Main Line residential real estate market has been thriving in recent years, with home values steadily increasing. In fact, according to a report from Zillow, the median home value in the Main Line area is currently $681,711.
Meanwhile, in Center City Philadelphia, the real estate market is also experiencing growth. The median home value in Center City is currently $450,767, according to Zillow. This is a significant increase from just a few years ago, as the demand for urban living continues to rise.
As for the foreclosure situation, while there has been a recent increase in filings, it’s important to keep it in perspective. According to a report from ATTOM, foreclosure filings in the Philadelphia-Camden-Wilmington metropolitan area were up 33% in Q3 2022 compared to the previous quarter, but still down 10% compared to the same period in 2021.
Basically, there’s not a sudden flood of foreclosures coming. Instead, some of the increase is due to the delayed activity explained above while more is from economic conditions. As Rob Barber, CEO of ATTOM,explains:
“This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”
To further paint the picture of just how different the situation is now compared to the housing crash, take a look at the graph below. It shows foreclosure activity has been lower since the crash by looking at properties with a foreclosure filing going all the way back to 2005.
Furthermore, the number of foreclosures in the current market is still far below the levels seen during the housing crisis. Buyers today are generally more qualified and less likely to default on their loans. And with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.
Overall, the Main Line and Center City Philadelphia real estate markets remain strong, with rising home values and a manageable level of foreclosures. If you’re thinking about buying or selling a home in these areas