First, we should mention that some level of mortgage default is normal, due to unforeseen hardships befalling borrowers. Prior to the Great Recession, defaults averaged between 2% and 3%.

In the early months of 2020, new mortgage defaults were fueled by pandemic disruptions. During April, 6.1% of borrowers nationwide fell behind on their mortgages. Some metros saw default rates swell to 10%. In Ohio, 5.6% of all residential mortgages were in default.

During March 2020, Columbus area mortgage defaults were averaging 3.6%. As shutdowns took hold in April, Columbus mortgage defaults reached 5.2%.

Default rates are likely to stay above norm until unemployment levels simmer down. The U.S. Bureau of Labor Statistics reported an Ohio unemployment rate of 13.9% during May. This improved to 10.9% in June, based on preliminary data. It will be a long walk back to normal employment levels, but there is hope that the worst is behind.

Our local economy, while affected by the pandemic, has been more resilient than other areas of the country. Steady demand exists for Central Ohio homes, and the limited supply of homes for sale has kept home prices climbing. Columbus home buyers should stay alert to changing conditions, and use an Exclusive Buyer’s Broker to ensure a wise purchase!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Columbus Mortgage Defaults Start to Rise appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.