Deetra: Now, we’ve been getting a lot of questions about where we think the market’s going since the seasons changed and we have an election year, and just all the variations. What do you think about where the market is headed now?
Neal: It’s kind of tricky to say, because you can’t really… I don’t want to say that you can predict the market, but I feel like in many ways, we might be going towards a down trend. And I say this based on facts that I’ve been reading about, and what I’ve been hearing about in the real estate market. So, for example, before the whole coronavirus thing, we were down to about 5,000 foreclosures a month, I believe in Texas.
Now that we’ve had this whole moratorium, meaning that banks and other lenders cannot foreclose on homeowners until I believe it’s like December 27th or something like that, that being said, all of those foreclosures are kind of in the backlog. So they’re all just building up. So, I say that because if your house right now is worth let’s say, $200,000, and in January, they allow these foreclosures to start happening, then your home might see a little depreciation. Now that depreciation will be because the way that you’re able to get the value of different homes is by different comps in the neighborhood. So, if other people in your neighborhood start getting foreclosed on and houses start going for… I don’t know, let’s say $150,000 at foreclosure sales when they’re really in your neighborhood around $250, then your house might go down to… you never know, maybe $220, $230, something like that. Just because all of these other homes are selling for so low.
Now, I’m not 100% sure, nobody really knows. It might happen, it might not happen. But that’s what I’m seeing right now, and if it doesn’t happen, great. I hope the economy can keep going, but there’s a real estate bubble that looks like it’s about to pop.
Deetra: Yeah, because Texas is one of the states where homes sell very well, so we are more productive than most states. It’ll be interesting to see, but the trend typically is you sell more from spring to summer anyway, so we’ll just have to kind of see how it goes from here.
Download Your FREE Stop Foreclosure Guide BelowJust put in your name and email, click "Submit" and we'll email you the Free Guide right away.
Neal: For sure. If you’re interested in learning a little bit more about real estate trends or just real estate tips and stuff like that, you can go on our website, www.NowPropertyInvest.com. You can check us out, give us a call at 214-744-3491. We love to just work with people, even if we don’t get your business or anything like that. It’s cool just answering questions and just being of service to the community. Check us out: NOW Property Investments