Delinquency goes down when property values not only go up, but are at rates that are high and sustained. By high I mean, houses are selling in area far above what a reasonable person would say they are worth.
I realize people buy into real estate at different time and value troughs.
To explain, a long stable urban city neighborhood with prevailing 5 year average legit transaction value of $80k starts in thus market sustaining $145k. Reasonable person who is not upwardly mobile but lives on same community and has witnessed the sustained uptick thats our person.
In that $80k sustaining $140k, delinquencies will usually decline. Why? Because that real estate now has diverse risk investment ready to buy it at any sign of distress, including at tax sale.
Great work, Alex. Very informative.
My take on tax delinquency...
Delinquency goes down when property values not only go up, but are at rates that are high and sustained. By high I mean, houses are selling in area far above what a reasonable person would say they are worth.
I realize people buy into real estate at different time and value troughs.
To explain, a long stable urban city neighborhood with prevailing 5 year average legit transaction value of $80k starts in thus market sustaining $145k. Reasonable person who is not upwardly mobile but lives on same community and has witnessed the sustained uptick thats our person.
In that $80k sustaining $140k, delinquencies will usually decline. Why? Because that real estate now has diverse risk investment ready to buy it at any sign of distress, including at tax sale.