Daily Archives: June 6, 2021

Eviction moratorium update | Bedford Corners Real Estate

Eviction friction

A national moratorium on the eviction of tenants had previously been set to expire today, though a 5-4 decision at the nation’s highest court will see the order extended for another month. Chief Justice John Roberts and Justice Brett Kavanaugh joined with the court’s three liberal justices to leave the moratorium in place, with Kavanaugh issuing a one-paragraph concurrence detailing his views. “Because the CDC plans to end the moratorium in only a few weeks, on July 31, and because those few weeks will allow for an additional and more orderly distribution of the congressionally appropriated rental assistance funds, I vote at this time to deny the application” that had been filed by real estate firms and trade associations.

Backdrop: The CDC eviction moratorium was put in place under the Trump administration, aiming to shield tenants who missed monthly rent payments from being forced out of their homes during the coronavirus pandemic (they still owe back rent). It was originally set to expire on Dec. 31, 2020, but Congress stretched the order until late January, and it was then extended several more times under the Biden administration. While the CDC last week announced a final, one-month extension through July, U.S. District Judge Dabney Friedrich ruled the moratorium was legally unsupportable, though she stayed her ruling (pending appeal) citing public-health concerns.

While the moratorium has protected millions of tenants, it has also resulted in financial hardships for landlords. Property owners, which say they are losing $13B a month in unpaid rent, are still liable for taxes, insurance and maintenance costs tied to their real estate. They also said the ban on evictions is less justifiable now due to the easing of COVID-19 restrictions and a high number of vaccinated Americans.

Reactions: “Allowing evictions to proceed when there are tens of billions in resources to prevent them would be wasteful and cruel,” said Diane Yentel, CEO of the National Low Income Housing Coalition. Landlords feel differently. “With the pandemic waning and the economy improving, it is time to restore the housing sector to its healthy, former function,” replied Charlie Oppler, President of the National Association of Realtors.

Statistics: By the end of March, 6.4M American households were behind on their rent, according to data from the Department of Housing and Urban Development. On June 7, a Household Pulse Survey from the U.S. Census Bureau also showed that roughly 3.2M people in the U.S. feared an eviction in the next two months.

FHFA reports 16% increase in home prices | Chappaqua Real Estate

The Federal Housing Finance Agency (FHFA) found that house prices across the nation rose 16% from April 2020 to April 2021.

From March to April, house prices across the nation rose 1.8%, surpassing the previous month’s 1.6% increase.

Three regions — the Pacific coast, the western states and New England — saw more pronounced year over year increases. The FHFA index tracks seasonally-adjusted, purchase data from Fannie Mae and Freddie Mac.

In the mountain division, which includes Colorado, New Mexico, Idaho, Wyoming, Utah, Nevada, Arizona and Wyoming, house prices rose 21% year over year. In the pacific division, encompassing Washington, Oregon and California, prices rose 18%. In Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island, house prices also rose 18%.

“House prices recorded another monthly and annual record in April,” said Dr. Lynn Fisher, FHFA’s deputy director of the division of research and statistics. “This unprecedented price growth persists due to strong demand, bolstered by still-low mortgage rates, and too few homes for sale.

Mortgage rates rose above 3% for the first time in 10 weeks last week. Mortgage applications are still on the rise, however.

House prices have risen during the past year as a result of elevated lumber prices, a lack of available homes and increased demand for homes.

Lockdowns early in the pandemic led many to work from home and divide their living space into home offices. Those who were able to bought homes with more space, better suited to the pandemic remote work trend.

That has led to astonishing price increases in markets like Seattle, where the median home-sale price rose more than 26% year-over-year to a record $737,800 in May 2021. Tech employees there, faced with working remotely from cramped apartments, instead hunted for homes with more space.

“I’ve never seen anything like this housing market,” a Seattle-area Redfin agent said.

read more…

housingwire.com/articles/