Real estate prices have been gaining momentum at a robust and strong pace, but investors and housing aficionados might wonder why. The basic philosophy for investing is simple, it helps you preserve wealth and to increase it over time. Indeed, housing prices generally rise, and have been a key investment vehicle for many families over the years.
The recent pandemic and its harm on the economy, ironically showed the value of this real estate purchasing principle. The COVID-19 event spurred the government to take action through lowering mortgage interest rates, injecting stimulus packages such as the CARES Act and other following packages.
The pandemic related government stimulus helped to ensure that markets stayed stable. At the same time it spurred individuals of all types to purchase homes across the country. This real estate frenzy took place over the mid half of 2020, and stayed robust until the midpoint of 2021.
Still, reports indicate that housing purchase interest is strong but not as robust as in the frenzy of 2020. That is not all; keen market enthusiasts and participants would note that there are other factors to watch out for in the following months.
Awareness of these programs will ensure that you sell your home at the right time through the right partner, in order to maximize the sale value of your home. Here is what you must know about upcoming housing events that can contribute to hefty, and significant decline in home prices.
Mortgage Forbearance and Housing Assistance Programs for Distressed Homebuyers Are Coming to A Close
The most important factor over the next few months is that mortgage forbearance, and COVID-19 distress related housing assistance is coming to an end for the most part. That distress can add more homes to the market and moderately or significantly decrease housing prices.
We at AFTHA can help you navigate this current housing situation and offer you the best price for your home. To give you a clearer idea of these current programs and their potential impact, it is essential to break these ones down.
Freddie Mac Forbearance
If those payments cannot take place due to any hardship, foreclosures and evictions will start after June 30, 2021. In essence, as this program comes to an end, the real estate market is likely to see a significant supply of homes, and as demand begins to dissipate, housing prices could easily go down.
That means that if an individual applied for forbearance as early as last March or May, they will only have a very small extension. While there are other relief programs, it may not be so simple to apply.
This complexity will likely add to more homes reentering the market via foreclosures and evictions. Again, as these properties take part into the market, it can lead to price declines in several areas across the United States.
VA Loan Forbearance and USDA Forbearance
As such, these programs become more stringent or eliminated completely, those who still cannot make standard payments will move to a more cost-effective housing situation. Also, more houses are likely to enter the market over July, this will certainly decrease home prices nationwide.
Home Sellers Will Take Advantage By Selling Soon (This Month)
In essence, it looks like the housing market is gradually turning and cooling down. Home sellers who are looking to obtain the best price for their properties, would want to ensure that they do so quickly before more supply drives down home prices.
At AFTHA we can make the home selling process a lot easier, we can offer you the best price in just 24 hours. If you want to know more about our program, and get a better deal before June 30th, please click the APPLY button down below, or give us a call at (833) 478-1397. We’ll make sure to help you from start to finish.
© 2021 AFTHA PROGRAM All rights reserved.