First Quarter 2021

Happy Second Quarter 2021! As I sit here pondering and viewing my crystal ball… I wonder what the rest of the year will be like in the real estate world. One thing I wanted to point out is that our market space has been void of inventory for a long time. Our communities simply don’t have enough homes available for sale to support the current buyer pool which is causing the pricing to increase quickly. In reading guru reports who speak in general terms about the foreclosure market, I wanted to dispel what I believe to be myths for our New Jersey market. NJ is a judicial state when it comes to foreclosures. Judicial meaning that when a lender forecloses, they must go through the courts like a lawsuit with the ending of the process at the sheriff sale. Our process is long here and with the opportunities along the way for a homeowner to delay the process through bankruptcy and dispute, it can take an average of 2+ years for the process to occur. When we were at the height of our foreclosure plume, it was taking on average 1300 +/- days to process a foreclosure action. Given the current moratoriums which continue to be extended, the only properties it appears that are getting through are those that are vacant. When the pandemic shut down started in March 2020, our inventory levels for foreclosures were extremely low to start with. As well as our traditional inventory. Even if they opened the gates today to process that which has been building, it would not be enough to flood our market spaces with inventory. For those who are reading the same reports I am, please note that the market will not be flooded anytime soon in NJ with foreclosed properties. It will be another cause that slows down the market such as traditional inventory building, interest rates rising, or some other economic injury. So the next time you read a report on a flood of foreclosures coming… take into consideration who is writing the report and if they are generalizing for the nation, state-specific, or those states that are non-judicial or have a short judicial process. Of course, if you have any questions, please email me at lglopez@homealliancerealty.com