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Email Jan & Wally
Jan Bigelow: 928.300.1699
Wally Reule: 928.301.5943
If you are expecting to find a really good deal in Sedona through foreclosure, you may have a very long wait. Core Logic recently published their Loan Performance Insights report for November 2020. 5.9% of mortgages were delinquent by 30 or more days in November, which is up from 3.9% in November 2019, before the COVID-19 pandemic hit. Serious delinquent loans plus loans in foreclosure are at 3.9%, which is the lowest rate reported since June 2020. This declining level of delinquency supports the view that there will a large supply of distressed inventory in the next year,
The difference between today's defaults and those that we witnessed in the 2007-8 crash is the equity position owners have, as the market has broadly recovered beyond the 2006 market peak in most locations e.g. there was a time when over half of Arizonans were under water (owed more than there home was worth). Today, of course, things are much different. Additionally, because of the large increase in the national debt, the Fed is likely to keep interest rates low as long as possible.
Because there are so few in Sedona and the demand is so high, the banks are holding out for higher prices than they did the last time around.