At the end of the mortgage grace period, 500,000 homeowners will be faced with the reality of losing a home.
However, unlike 2007 and 2008 (they have equity), these homeowners have the option of selling their home rather than entering foreclosure.
This situation is likely to lead to increased inventories this spring. In addition to homeowners avoiding foreclosures, Yun said another segment of homeowners will sell their homes for other circumstances, such as the loss of a loved one due to COVID.
There are often changes and family situations that require the sale of a home. This can also lead to some additional inventory.
Increased inventories would help cool home price increases.