What actually came from the foreclosure moratorium
A lot of people thought the end of the foreclosure moratorium was going to cause a flood of houses to come on the market, and the end of the housing shortage. What they didn't consider is twofold. One, banks don't want to own houses. And two, this shortage goes much deeper than some foreclosures that didn't happen.
Foreclosures occur because a borrower defaults on their loan. Borrowers and banks alike have many options to avoid foreclosure and both will generally do everything they can to do so. Banks don't want to own property. Foreclosures require a lot of paperwork, the property requires upkeep and the bank would have to pay insurance and taxes, expenses they won't recover in the sale.
Because of this, most banks are working with at risk homeowners in order to avoid foreclosure. For those who were holding out to see that flood of houses come on the market, don't hold your breath. We haven't seen nearly the increase that many anticipated, and we likely won't.
Foreclosure is different in each state, so if you find yourself at risk of foreclosure, make sure to work with your lender to comply with your state's guidelines.
When the Real Estate bubble burst in 2008, many builders left the industry. Those who remained changed gears and stopped building spec homes. Because of the lack of new construction, there are too few homes being built to keep up with population growth.
Add to this the fact that the largest generation ever is coming into their home buying years and current owners are living longer, healthier lives and there is now a legitimate housing shortage. So many more people looking to buy than sell means houses are selling fast and buyers are paying top dollar, often even above appraised value.
Don't give up hope, though. Just like we eventually recovered from the 2008 crash, this too shall pass. As the weather heats up, the market will, too. Be patient, have faith, and call me when you're ready to buy or sell!