Don’t Believe Everything You Read: The Truth Many Headlines Overlook

"In real estate — and in life — the loudest headlines aren't always the truest. Trust facts over fear, and you'll always find your way home."

At Reid Real, we know there’s a lot of buzz — and confusion — surrounding the real estate market as we head into 2022. Between the forbearance program winding down and mortgage rates ticking upward, it’s natural to have questions. Unfortunately, with uncertainty comes sensational headlines. In today's world, anyone with a platform — from major media outlets to solo bloggers — knows that bad news gets clicks.

Here’s the truth: while headlines are designed to grab your attention, they often leave out important context. At Reid Real, we’re committed to helping you see the full picture, not just the scary soundbites.

Let’s break down two of the biggest topics you might be seeing.

1. Are Foreclosures Really Spiking?

Some headlines are making it seem like we’re heading for a foreclosure crisis. But let’s be clear: the data tells a different story.

Yes, foreclosures have increased compared to 2020 — but remember, in 2020, there were virtually no foreclosures because of the government’s forbearance program. Comparing today’s numbers to last year’s paints a misleading picture.

When we look at September 2021 compared to September 2019 — the last “normal” year — foreclosures were actually down 70% (according to ATTOM). That's huge.

Rick Sharga, Executive VP at RealtyTrac, put it perfectly:

"As expected, now that the moratorium has been over for three months, foreclosure activity continues to increase. But it’s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties, or loans in foreclosure prior to the pandemic."

In other words, this is not a new wave of struggling homeowners losing their homes. Most people exiting forbearance are doing so successfully, thanks to strong government protections and an improving economy.

Ali Haralson, President of Auction.com, reinforces this:

"The tsunami of foreclosures many feared in the early days of the pandemic has not materialized."

At Reid Real, we stay current on these market shifts so we can provide you with honest, informed advice.

2. Will Rising Mortgage Rates Crush the Housing Market?

Another worry you might have seen: "Mortgage rates are rising — is the housing market about to crash?"

Let’s pause. Historically, rising rates have not crashed the housing market.

When we look back at the last 20 years, the three times mortgage rates increased significantly, home sales remained steady, and home prices continued to appreciate — just at a slower, more sustainable pace.

Even during the 2007–2010 downturn, home sales declined despite falling mortgage rates, showing that other factors (like economic stability and lending standards) play a bigger role than interest rates alone.

So, while higher rates might cool off the extreme frenzy we’ve seen over the past two years, they won’t cause the market to collapse. In fact, a slightly slower market may create better opportunities for buyers who have struggled with fierce competition.

Bottom Line

The housing market is not on the verge of collapse. Foreclosures are under control. Home prices are expected to keep rising, just not at breakneck speed.

At Reid Real, we believe it’s more important than ever to have a trusted guide by your side. Instead of letting a headline drive your decisions, lean on real data and real experts.

If you’re thinking about buying, selling, or simply have questions about where the market is headed, let's chat. We’re here to make sure you have the real story — and real peace of mind.

Contact Reid Real today — because when it comes to your biggest investments, you deserve clarity, not chaos.