What Current Foreclosure Rates Mean for Brevard County Real Estate

With rising living costs affecting everyone, it’s natural to wonder how these changes might impact the housing market, especially in Brevard County. Many people fear that tighter budgets and high prices could lead to a surge in foreclosures. But the latest data tells a different story—there’s no foreclosure wave on the horizon.

Here’s what’s really happening with current foreclosure rates and why Brevard County real estate is standing strong.

How Today’s Foreclosure Rates Compare to 2008

Let’s ease those fears by looking at the big picture. Current foreclosure rates remain much lower than during the 2008 housing market crash. According to data from ATTOM, a leading property data provider, foreclosure filings today are a fraction of what they were over a decade ago.

During the 2008 crisis, foreclosures skyrocketed, flooding the market and driving home values down. Today, however, foreclosures remain under control—thanks in large part to homeowner equity.

Why Foreclosures Are Limited Despite Rising Costs

You might be asking: how can foreclosure rates stay low when the cost of living has increased? The answer lies in home equity. Homeowners today have significantly more equity in their homes than they did in 2008. This financial cushion allows many to avoid foreclosure even if they face financial challenges.

As Bankrate explains:
"Unlike during the housing crash, most homeowners today have a comfortable equity cushion in their homes, enabling them to sell before foreclosure becomes necessary."

Even in Brevard County, the story is the same. Local homeowners are benefiting from years of rising property values, giving them options to sell or refinance rather than risk foreclosure.

Brevard County Real Estate: A Stable Market

Brevard County real estate remains one of the most stable housing markets in Florida. While foreclosure filings have slightly increased since the pandemic moratorium, they are far below historical averages. The moratorium, which temporarily paused foreclosures, artificially lowered the numbers in 2020 and 2021. Now, as the market normalizes, filings have ticked up—but only slightly. As of November 22 2024 there are only 293 bank owned foreclosures in Brevard County and 22 for sale on the multiple listing service.

Local trends show that Brevard County homeowners are better equipped to weather economic challenges. With significant equity and a steady influx of buyers, the market remains robust, avoiding the instability of the 2008 crash.

What’s Next for the Housing Market?

While inflation and rising costs continue to challenge households, experts agree that the housing market isn’t heading for another foreclosure crisis. The equity many homeowners hold acts as a protective buffer, and Brevard County real estate is no exception.

Data shows that even if some homeowners face difficulty making payments, they’re far more likely to sell their homes than go into foreclosure. This proactive approach further stabilizes the market and prevents a domino effect of declining property values.

FAQs:

1. Are foreclosure rates increasing in Brevard County?
While foreclosure filings have increased slightly compared to 2020 and 2021, current rates in Brevard County are much lower than during the 2008 housing crash. Homeowner equity is helping keep foreclosure rates under control.

2. How does home equity protect homeowners from foreclosure?
Home equity allows homeowners to sell their properties instead of facing foreclosure. If someone owes less on their mortgage than their home is worth, they can sell and repay their debt, avoiding financial loss.

3. Is the Brevard County real estate market stable?
Yes, Brevard County real estate remains stable due to strong demand and significant homeowner equity. The area continues to attract buyers, maintaining a healthy market balance.

4. What caused foreclosure rates to rise slightly after 2020?
The increase is due to the end of the pandemic-related foreclosure moratorium, which temporarily paused foreclosures. Despite this, overall rates remain low compared to historical averages.

5. Should I worry about a housing market crash in Brevard County?
No, current data shows that Brevard County real estate is far from a crisis. Strong homeowner equity and steady buyer demand are keeping the market resilient.

Sources:

1. ATTOM Data Solutions: www.attomdata.com

Bankrate:www.bankrate.com