Foreclosure Crisis Unlikely in 2021 (Here's Why)

Rick Sharga from RealtyTrac explains why a foreclosure crisis is unlikely in 2021. Rick, an executive from RealtyTrac, shares his data and analysis of the state of the housing market and the number of people in a forbearance program.
0:00 Introduction
4:37 55% of Americans say they are better off than four years ago
10:53 U-haul rates from California to Idaho
17:54 Introducing Rick Sharma
18:54 Everyone is asking, “Is COVID going to cause a housing crash?”
19:50 The pandemic has not slowed down the housing market even a little bit.
21:42 The pandemic accelerated millennials’ trend to stop being urban renters and become homeowners
25:35 Concern about the housing bubble
26:28 The 2006 median price home was $650 more expensive than the median price home today, adjusted for interest rates and inflation.
28:00 There may be price corrections in the high end of expensive markets like SF, Austin, Coastal California
29:19 Rick distinguishes between foreclosures and opportunities.
31:31 The Cares Act puts people into a protected state until March 2021
32:15 Worst case scenario is 725,000 foreclosures in 2021
33:25 Will 3 million in forbearance programs end up in foreclosures?
34:57 It's easier for lenders to work with borrowers then letting them default
35:32 Record amount of home equity in the market, about 70% of homeowners have at least 20% equity
41:45 Not as many ARM loans this time
43:50 Discussing California’s new law that the institutional buyer cannot buy foreclosures.
46:15 Rick breaks down his expectations for each sector of commercial real estate
50:56 One of the most significant shortages in housing is in the low price tiers.
52:58 Biden's first-time buyer tax credit would push up prices
54:19 RealtyTrac's website: https://www.realtytrac.com/

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