Many in the real estate industry have been looking for the trigger to cause the next downturn in the economy and real estate and shockingly, during COVID, there has not been significant negative news, mostly due to government intervention on mortgages and rental evictions. But, there is a point where this will end, and the back money that is owed will be due.
This article points out the coming wave of delinquencies and I fully believe that the COVID pandemic has created the platform for which we are now at the beginning of our real estate "normal" economic cycle. Historically, these cycles tend to be every 10 to 12 years, and in the last 50 years this has been like clockwork. We will probably start seeing more defaults, bankruptcies, foreclosures, and even some short sales in the next 2 to 3 years, and if we follow the same cycle trends, we’ll hit the market correction low point probably in 2023 to 2024, and then begin to rebuild appreciation in home values from there again.
I have many memories as I read this article from 2009 through 2011, so it’s intriguing to be back there again, getting ready for the next real estate economic cycle. Buckle up and get ready cause here we GO!