RALEIGH, N.C. (WNCN) — Newly-released data shows Wake County foreclosures increasing by 425 percent this year compared to the same time frame last year.
While that may sound like a major jump, market experts say it’s all about context.
This week, real estate data company ATTOM, released their national findings for foreclosure proceedings for August 2022.
Compared to the first eight months of 2021, Wake County is up by 425 percent, Franklin and Orange Counties by 300 percent, Johnston County by 85 percent and Durham County by 75 percent.
Although increasing, the director for the Klein Center for Real Estate at UNC Charlotte, Yongqiang Chu, said it’s not like foreclosures are flooding the market.
“I’m actually not surprised to see those numbers,” Chu said.
During the pandemic, foreclosures all but stopped due to payment pauses that protected people who couldn’t make their monthly mortgages.
“It was kind of artificially low in 2020 and 2021,” Chu said.
While the data is starting to approach pre-pandemic levels, Chu said even then in 2019, those foreclosure rates were already considered low, especially compared to other market slowdowns.
“It’s nothing comparable to 2007/2008,” Chu said. “So I don’t think there’s anything to worry here from those numbers.”
Local broker Gretchen Coley said she’s also not seeing a surprising number of foreclosures on the market.
“Most people in this market are in a positive equity situation because of the growth that we’ve had,” Coley said. “We are seeing a couple of short sales here and there and a couple of foreclosures, but it’s not anything like these numbers are representing.”
Coley said the Triangle real estate market is still in a better position to sell than let pass over payments if you’re facing financial struggles.
“Just because you may be facing foreclosure doesn’t mean that you’re going to be selling your home for less than market value,” Coley said. “With the rise of appreciation that we’ve had in our market over the past two years, you’d be surprised at what your home is worth and your ability to be able to get out of that.”