New real estate forecasts and foreclosure forecasts like any current local data are critical to real estate. Back in the days, when there were no accurate real estate forecasts or foreclosure forecast or housing market predictions, real estate investors simply relied on following the heard, and limited to simple property data.
With no local data, this is a problem that even continues today, even in 2016. Little has changed. For us, Growth Maps, and for many real estate investors, foreclosure forecasts are also highly correlated to foreclosure inventory.
Today, even if you are looking for Foreclosure Forecast 2018, Florida Housing Market Forecast 2018, or if there are Foreclosures Coming in 2018, what matters is your local neighborhood and your hyper-local market and your local foreclosure forecast. Accurate local foreclosure forecast are still a thing of the future, unless you believe in fairly tails. The highest foreclosure forecast rates today are taking place in all of the former hot spots, where prices were driven up artificially by demand partially inflated by a number of variables including:
High Liquidity of Financial Markets: Historically low interest rates in the post-9/11 era gave lenders ready access to capital. More capital opened the doors for more creative lending programs, and a more aggressive risk approach by the lenders. Loose Lending Standards: The immense amount of capital flooding the financial post-9/11 market helped stimulate the economy, which led to dramatic repercussions. Foreclosure Predictions and More Foreclosures in 2018 were a possibility. In fact, there was literally more capital available than there were people with good credit asking for it so lenders relaxed their time honored lending standards.
Few have access to accurate real estate forecasts….
People who would normally have been forced to rent due to low credit scores were able to secure subprime loans at higher rates and fees than customers with good credit.
Sadly, many of these individuals could not afford the properties they financed, and would ultimately lose them through foreclosure. At 69% (the highest level ever), home ownership levels are elevated due to those loose lending standards that helped artificially stimulate both demand and selling price.
Speculative Investors and real estate forecasts
Spurred on by a seemingly pro-housing media that literally elevated successful house-flippers to celebrity status (even as the market was clearly crashing), investors dramatically drove up demand during the housing boom of 2001 to 2016. The solution way and is having accurate local foreclosure forecast with current local data. During some time alone, 36% of all homes sold were second homes, meaning they were either investment or vacation properties.
With house-flipping typically most profitable in regional hot spots like Boston and most of California, investors were attracted to these areas. This artificially stimulated demand and prices even more. Bonfire of the Builders, Mara Der Hovanesian, http://growth-maps.com/
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