Here’s how the end of pandemic programs will affect our housing market.

Now that the eviction ban and foreclosure moratorium are ending, big changes are coming to our real estate market… or are they? Today I want to discuss how the end of these programs will affect our market and what it all means for you. 

Let’s talk about the eviction ban first. For the last 18 months or so, it’s been almost impossible to evict someone from your property unless you catch them doing something pretty out there. A lot of landlords have tenants who haven’t paid any rent in 18 months, and some of them are thinking twice about this whole landlord thing. A few of them may give up being a landlord altogether, while others may move to a more landlord-friendly state. Either way, this means they have to sell their properties, so we could expect to see a small influx in rental properties. 

Now let’s discuss the foreclosure moratorium. During the pandemic, the government allowed people to put their homes in forbearance and put off their mortgage payments until the end of the special period. Now that time is ending, and if you’ve been putting off your payments, you have a few choices. 

A stable market is good news for everyone.

First, you could get foreclosed on, but that shouldn't be necessary. Home values in San Diego have skyrocketed during the pandemic, so you probably have a lot of equity in your home. Instead of losing your home, you could see a nice payday. We’ve had a ton of homeowners reach out to us for help selling their properties, so that means there will be even more homes on the market. 

With supply increasing, what does that mean for home values? Real estate is a function of supply and demand, so I think the astronomical growth we’ve seen over the last 18 months will level out. Instead of values increasing 2% or more every month, we’ll probably see around 0.5% to 1% per month. This is a much healthier rate of growth for our market, and a stable market is good news for everyone. 

If your forbearance is ending, or if you want to sell a rental property, please give us a call or shoot us an email. We would love to help you in any way we can.