Is a foreclosure wave coming? Since there is no longer a foreclosure moratorium in California, will we see more foreclosures ahead? The truth is, it's impossible to predict how many distressed sales we will see, but right now, delinquencies are very low. We have bottomed out with distressed sales, and there isn't any place to go but up. 

For instance, in Q4 last year, we saw 0.29% of all sales as either bank or short sales in Sacramento County. Also, the market has seen a sharp price increase. As a result, we should logically expect to see more people in negative equity positions. Nationwide, we haven't seen a major uptick in the mortgage delinquent season either, but this is something that we should watch. 

A lot of people are saying a foreclosure wave is about to hit, but we truly aren't having a massive delinquency problem. We are seeing slightly more distressed sales hit the market, and we need to pay attention to this, but it's important to keep the narrative in check. Currently, distressed inventory is a drop in the bucket compared to the total volume. 

So let's not say a "massive wave", but instead a "slight uptick."