GUEST: DAREN BLOMQUIST
Our guest Daren Blomquist took some heat back around 2005 when his company started reporting on rising foreclosure rates. But he was right then, and he’s still on the leading edge of market forecasting. In today’s episode, he describes the irrational real estate market conditions and shares his wisdom on why prices are rising “like a hockey stick.” He gives his predictions on when inventory will rise and prices will come back down to earth
Today’s real estate market is behaving irrationally. Prices are high, inventory is low, but many homeowners are way behind in their payments. It’s a black swan with a split personality! Serious delinquencies are very high, but prices continue to rise. In fact, the value of the average house has gained about 24% in the last year, and the median home price has topped $350K for the first time. But how long will the pricing bubble continue? Our special guest, Daren, Blomquist of Auction.com, is one of the most trusted experts in real estate. You’ll hear him describe what he thinks is coming down the pike in the coming months and years.
Daren has been featured hundreds of times on major news networks and publications to share his wisdom on real estate market trends. As Vice President of Market Economics at Auction.com, he has a unique vantage point for seeing what’s coming down the pike. About 50% of all foreclosed properties are listed on Auction.com, so foreseeing foreclosure trends is crucial to his business; and he shares that wisdom with our viewers.
Daren was one of the first real estate analysts to report on the rising number of foreclosures on the leading edge of the Great Recession back around 2005. He was accused of being “sensational” with his reporting, but continued accurately telling his audience exactly what the market trends were showing. As it turns out, he was completely right back then, and his insights on what’s coming in today’s market are just as valuable.
He says foreclosures are being held back because of moratoriums, but a rise is definitely coming. As a result, there will be a gradual increase in inventory and a leveling off of prices in the months and years to come. It’s especially great advice for investors who deal with distressed properties and nonperforming notes.
00:01 | Brian introduces the episode. Then Joe Varnadore gives latest news recaps (record high home prices, median home price over $350K, down payments often top 20%).
6:00 | Introduction of Daren Blomquist of Auction.com.
7:50 | Daren says today’s market is much like 2001 when real estate was on fire. He describes reporting on rising foreclosures in 2005, but was accused of being “sensational.” He is now seeing irrational changes in the market.
11:40 | Daren describes how Auction.com specializes in distressed properties, and offers about 50% of the foreclosure properties on the market. Homeowners who are behind are feeling more pressure to sell quickly now that the foreclosure moratorium is being lifted. So he’s expecting to see a gradually rising tide of inventory. But foreclosure rates are still below pre-pandemic levels.
24:00 | He expects foreclosure rates to continue rising through 2022, 2023, and 2024 and provide more inventory. The US currently has 2,000,000 properties in forbearance or seriously delinquent. So pre-foreclosure sales on properties and notes will be rising.
30:20 | Daren recommends “keeping your powder dry” for big opportunities coming soon down the road as foreclosure moratoriums are lifted.
33:00 | Brian announces today’s sponsor: NotesDirect
35:00 | After party begins. First question covers properties that appraise lower than the selling price.
40:00 | Daren shows graphic of auction.com properties that were bought and then resold for a profit.