Did you know? A seriously delinquent home loan is typically defined as a loan that is 90 days or more past due or already in the foreclosure process. According to a recent report from CoreLogic, compared to levels seen this past June, the number of delinquent home loans could double by 2022. While this is certainly concerning, it also assumes no additional government programs or support. As we have already seen, the government has initiated various programs to begin addressing the devastating impact of the pandemic. CoreLogic’s most recent Loan Performance Insights Report noted that nationally, 7.1% of all mortgages were in some state of delinquency as of June. That’s up 3.1 percentage points from June of 2019.
As for South Florida, CoreLogic reported that homes in the Miami-Fort Lauderdale-West Palm Beach market had a 13.4% delinquency rate of 30 days or more in June, more than double the rate of 5.3% from a year ago. The area had a serious delinquency rate of 7.1%, more than triple the 2% rate a year ago. The foreclosure rate dropped, however, to 0.6% in June from 0.9% during the same time a year ago.
So what does this all mean? Due to the unique circumstances of a global pandemic, there are many opinions on what the future will hold. Interestingly, real estate has been one of the bright spots in the South Florida economy as of late. Furthermore, it is largely expected that the Federal Reserve will continue to keep interest rates very low for the foreseeable future. While the extent of foreclosures is truly unknown, the demand for rental housing is projected to remain strong with some strengthening likely. In anticipation of this, some real estate investors are accumulating more single-family rental income properties.
Like all real estate, the market dynamics will be unique for your market. Perhaps now more than ever, it would be wise to have the professional & knowledgeable guidance of a local real estate professional. At Live South Florida Realty, Inc., we have professional agents spanning Palm Beach, Broward, & Dade Counties to better serve you.