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Are We About to See a New Wave of Foreclosures?

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With all of the havoc being caused by COVID-19, many are concerned we may see a new wave of foreclosures. Restaurants, airlines, hotels, and many other industries are furloughing workers or dramatically cutting their hours. Without a job, many homeowners are wondering how they’ll be able to afford their mortgage payments.

In spite of this, there are actually many reasons we won’t see a surge in the number of foreclosures like we did during the housing crash over ten years ago. Here are just a few of those reasons:

The Government Learned its Lesson the Last Time

During the previous housing crash, the government was slow to recognize the challenges homeowners were having and waited too long to grant relief. Today, action is being taken swiftly. Just this week:

  • The Federal Housing Administration indicated it is enacting an “immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages” for the next 60 days.
  • The Federal Housing Finance Agency announced it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.”

Homeowners Learned their Lesson the Last Time

When the housing market was going strong in the early 2000s, homeowners gained a tremendous amount of equity in their homes. Many began to tap into that equity. Some started to use their homes as ATM machines to purchase luxury items like cars, jet-skis, and lavish vacations. When prices dipped, many found themselves in a negative equity situation (where the mortgage was greater than the value of their homes). Some just walked away, leaving the banks with no other option but to foreclose on their properties.

Today, the home equity situation in America is vastly different. From 2005-2007, homeowners cashed out $824 billion worth of home equity by refinancing. In the last three years, they cashed out only $232 billion, less than one-third of that amount. That has led to:

  • 37% of homes in America having no mortgage at all
  • Of the remaining 63%, more than 1 in 4 having over 50% equity

Even if prices dip (and most experts are not predicting that they will), most homeowners will still have vast amounts of value in their homes and will not walk away from that money.

There Will Be Help Available to Individuals and Small Businesses

The government is aware of the financial pain this virus has caused and will continue to cause. Yesterday, the Associated Press reported:

“In a memorandum, Treasury proposed two $250 billion cash infusions to individuals: A first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size.”

The plan also recommends $300 billion for small businesses.

Bottom Line

These are not going to be easy times. However, the lessons learned from the last crisis have Americans better prepared to weather the financial storm. For those who can’t, help is on the way.

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Buying Tips

Why October Is the Best Time To Buy a Home in 2025

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If you’ve been watching from the sidelines, now’s the time to lean in. It’s officially the best time to buy this year. According to Realtor.com, this October will have the most buyer-friendly conditions of any month in 2025:

“By mid-October, buyers across much of the country may finally find the combination of inventory, pricing, and negotiating power they’ve been waiting for—a rare opportunity in a market that has been tight for most of the past decade.”

So, if you’re ready and able to buy right now, shooting for this month means you should see:

  • More homes to choose from
  • Less competition from other buyers
  • More time to browse
  • Better home prices
  • Sellers who are more willing to negotiate

Just remember, every market is different. For most of the top 50 largest metros, that sweet spot falls in October. But the peak time to buy may be slightly earlier or later, depending on where you live. As Realtor.com explains:

“While Oct. 12–18 is the national “Best Week,” timing can shift depending on the local markets. . .”

Best Week To Buy for the Top 50 Largest Metro Areas

  • Atlanta-Sandy Springs-Roswell, GA: September 28 – October 4
  • Austin-Round Rock-San Marcos, TX: September 28 – October 4
  • Baltimore-Columbia-Towson, MD: October 12 – 18
  • Birmingham, AL: October 19 – 25
  • Boston-Cambridge-Newton, MA-NH: October 26 – November 1
  • Buffalo-Cheektowaga, NY: October 12 – 18
  • Charlotte-Concord-Gastonia, NC-SC: November 2 – 8
  • Chicago-Naperville-Elgin, IL-IN: September 28 – October 4
  • Cincinnati, OH-KY-IN: October 12 – 18
  • Cleveland, OH: October 12 – 18
  • Columbus, OH: October 12 – 18
  • Dallas-Fort Worth-Arlington, TX: September 28 – October 4
  • Denver-Aurora-Centennial, CO: October 12 – 18
  • Detroit-Warren-Dearborn, MI: October 12 – 18
  • Grand Rapids-Wyoming-Kentwood, MI: September 28 – October 4
  • Hartford-West Hartford-East Hartford, CT: September 21 – 27
  • Houston-Pasadena-The Woodlands, TX: October 12 – 18
  • Indianapolis-Carmel-Greenwood, IN: October 26 – November 1
  • Jacksonville, FL: October 26 – November 1
  • Kansas City, MO-KS: October 12 – 18
  • Las Vegas-Henderson-North Las Vegas, NV: October 5 – 11
  • Los Angeles-Long Beach-Anaheim, CA: October 12 – 18
  • Louisville/Jefferson County, KY-IN: November 2 – 8
  • Memphis, TN-MS-AR: September 21 – 27
  • Miami-Fort Lauderdale-West Palm Beach, FL: November 30 – December 6
  • Milwaukee-Waukesha, WI: September 7 – 13
  • Minneapolis-St. Paul-Bloomington, MN-WI: October 26 – November 1
  • Nashville-Davidson–Murfreesboro–Franklin, TN: October 12 – 18
  • New York-Newark-Jersey City, NY-NJ: September 14 – 20
  • Oklahoma City, OK: October 12 – 18
  • Orlando-Kissimmee-Sanford, FL: October 26 – November 1
  • Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: September 7 – 13
  • Phoenix-Mesa-Chandler, AZ: November 2 – 8
  • Pittsburgh, PA: October 12 – 18
  • Portland-Vancouver-Hillsboro, OR-WA: October 26 – November 1
  • Providence-Warwick, RI-MA: October 19 – 25
  • Raleigh-Cary, NC: October 12 – 18
  • Richmond, VA: October 26 – November 1
  • Riverside-San Bernardino-Ontario, CA: September 28 – October 4
  • Sacramento-Roseville-Folsom, CA: October 12 – 18
  • San Antonio-New Braunfels, TX: October 12 – 18
  • San Diego-Chula Vista-Carlsbad, CA: October 12 – 18
  • San Francisco-Oakland-Fremont, CA: October 12 – 18
  • San Jose-Sunnyvale-Santa Clara, CA: October 19 – 25
  • Seattle-Tacoma-Bellevue, WA: October 19 – 25
  • St. Louis, MO-IL: October 12 – 18
  • Tampa-St. Petersburg-Clearwater, FL: November 30 – December 6
  • Tucson, AZ: October 12 – 18
  • Virginia Beach-Chesapeake-Norfolk, VA-NC: September 21 – 27
  • Washington-Arlington-Alexandria, DC-VA-MD-WV: October 12 – 18

What the Experts Are Saying

And Realtor.com isn’t the only one saying you’ve got an opportunity if you move now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020, during the COVID lockdown.”

Daryl Fairweather, Chief Economist at Redfin, puts it like this:

Nationally, now is a good time to buy, if you can afford it . . . with falling mortgage rates and significantly more inventory, buyers have an upper hand in negotiations.”

And NerdWallet says:

“This fall just might be the best window for home buyers in the past five years.”

How To Get Ready for this Golden Window

To make sure you’re ready to jump in whenever your market’s best time to buy arrives, talk to a local agent now. They’ll be able to give you more information on your market’s peak time, why it’s good for you, and the steps you’ll need to take to get ready.

Bottom Line

If you’re serious about buying, getting prepped for this October window is a smart play.

Want help lining up your strategy? Have a quick conversation with a local agent so you’ve got the information you need to be ready for this prime buying time.

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Affordability

What Buyers Say They Need Most (And How the Market’s Responding)

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A recent survey from Bank of America asked would-be homebuyers what would help them feel better about making a move, and it’s no surprise the answers have a clear theme. They want affordability to improve, specifically prices and rates (see below):

a graph of a couple of circles with textHere’s the good news. While the broader economy may still feel uncertain, there are signs the housing market is showing some changes in both of those areas. Let’s break it down so you know what you’re working with.

Prices Are Moderating

Over the past few years, home prices climbed fast, sometimes so fast it left many buyers feeling shut out. But today, that pace has slowed down. For comparison, from 2020 to 2021, prices rose by 20% in a 12-month period. Now? Nationally, experts are projecting single-digit increases this year – a much more normal pace.

That’s a sharp contrast to the rapid growth we saw just a few short years ago. Just remember, price trends are going to vary by area. In some markets, prices will continue to rise while others will experience slight declines.

Prices aren’t crashing, but they are moderating. For buyers, the slowdown makes buying a home a bit less intimidating. It’s easier to plan your budget when home values are moving at a much slower pace.

Mortgage Rates Are Easing

At the same time, rates have come down from their recent highs. And that’s taken some pressure off would-be homebuyers. As Lisa Sturtevant, Chief Economist at Bright MLS, says:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.

Even a small drop in mortgage rates can mean a big difference in what you pay each month in your future mortgage payment. Just remember, while rates have come down a bit lately, they’re going to experience some volatility. So don’t get too caught up in the ups and downs.

The overall trend in the year ahead is that rates are expected to stay in the low to mid-6s – which is a lot better than where they were just a few short months ago. They may even drop further, depending on where the economy goes from here.

Why This Matters

Confidence in the economy may be low, but the housing market is showing signs of adjustment. Prices are moderating, and rates have come down from their highs.

For you, that may not solve affordability challenges altogether, but it does mean conditions look a little different than they did earlier this year. And those shifts could help you re-engage as we move into next year.

Bottom Line

Both of the top concerns for buyers are seeing some movement. Prices are moderating. Rates are easing. And both trends could stick around going into 2026.

If you’re considering a move, connect with a local real estate agent to walk you through what’s happening in your area – and what it means for your plans.

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First-Time Buyers

Closing Costs Unpacked: State-by-State Breakdowns for Today’s Buyers

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If you’re planning to buy a home this year, there’s one expense you can’t afford to overlook: closing costs.

Almost every buyer knows they exist, but not that many know exactly what they cover, or how different they can be based on where you’re buying. So, let’s break them down.

What Are Closing Costs?

Your closing costs are the additional fees and payments you make when finalizing your home purchase. Every buyer has them. According to Freddie Mac, they typically include things like homeowner insurance and title insurance, as well as various fees for your:

  • Loan application
  • Credit report
  • Loan origination
  • Home appraisal
  • Home inspection
  • Property survey
  • Attorney

National vs. Local: Why the Numbers Look So Different

When you search for information about closing costs online, you’ll often see a national range, usually 2% to 5% of the home’s purchase price. While that’s a useful starting point if you’re working on your homebuying budget, it doesn’t tell the whole story. In reality, your closing costs will also vary based on:

  • Taxes and fees where you live (like transfer taxes and recording fees)
  • Service costs for things like title and attorney work in your local area

While the home price is obviously going to matter, state laws, tax rates, and even the going costs for title and attorney services can change what you expect to pay. That’s why it’s important to talk to the pros ahead of time so you know what to budget for. It can put you in control before you even start shopping.

To give you a rough ballpark, here’s a state-by-state look at typical closing costs right now based on those factors for the median-priced home in each state (see map below):

As the map shows, in some states, typical closing costs are just roughly $1-3K. In a few places, they can be closer to $10-15K. That’s a big swing, especially if you’re buying your first home. And that’s why knowing what to expect matters.

If you want a real number to help with your budget, your best bet is to talk to a local agent and a lender. They can run the math for your price range, loan type, and exact location.

And just in case you’re looking at your state’s number and wondering if there’s any way to trim that bill, NerdWallet shares a few strategies that can help:

  • Negotiate with the seller. Ask for concessions like a credit toward your closing costs.
  • Shop around for homeowner’s insurance. Compare coverage and rates before you commit.
  • Check for assistance programs. Some states, professions, and neighborhoods offer help. Your agent and lender can point you to what’s available locally.

Bottom Line

Closing costs are a key part of buying a home, but they can vary more than most people realize. Knowing your numbers (and how to potentially bring them down) can go a long way and help you feel confident about your purchase.

Connect with a local agent or lender to take a look at typical closing costs in your area and get your personalized estimate, so you can craft your ideal budget.

 

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Copyright © 2020-2025 Mark Sincavage. All rights reserved.  
The information contained, and the opinions expressed, in these article are not intended to be construed as investment advice. Let's Talk Real Estate, Mark Sincavage, and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Let's Talk Real Estate, Mark Sincavage and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.