Connect with us

Homeownership

Homeowners became an average of $4,680 wealthier this year

(HOMEOWNERS NEWS) Not only does this mean bigger paychecks for realtors – and ain’t nothing wrong with that – increased values represents the continued recovery of the American economy.

Published

on

money homeowners

Silver lining, folks

It’s a safe assumption that 2016 isn’t likely to appear on the “Best Years” list of anyone inclined to write “Best Years” lists. We lost luminaries, endured a straight-up nasty election, and in general lived through the kind of three hundred and sixty five that folks generally seem quite happy to ditch on the ash heap of history.

bar
So how about we finish this thing with some unabashed good news?

Unprecedented highs

Per the S&P CoreLogic Case-Shiller National Index and the National Association of Realtors, single-family home value is up nationwide. Compared to this time last year, single-family homes in the United States have risen in value by a remarkable 5.6 percent, hitting an unprecedented high this October.

S&P’s 10-City Composite reported a 4.3 annual gain, while the 20-City Composite had a 5.1 percent increase. Both divisions showed .1 percent increases from previously reported months. Seattle had the largest year-over-year gain, with 10.7 percent, while Portland came in close second at 10.3 percent. Denver also saw a notable increase at 8.3 percent.

Not only does this mean bigger paychecks for realtors – and ain’t nothing wrong with that – it represents the continued recovery of the American economy.

The wealth of homeowners has risen to the effect of 351 billion dollars of new equity nationwide. The Economist notes that shakes out to a rise of $4,680 for each of the 75 million homeowners of America.

Adios, 2016

That’s more than a comfy chunk of change. It’s a strong, widely distributed improvement in American economic and social well-being.

However, although this is great news, mortgage interest rates are expected to continue rising, according to David M. Blitzer at S&P Dow Jones Indices (which echoes endless statements from NAR this year).

While consumer confidence is at a high and unemployment at a low, affordability may become an issue.

Blitzer notes that “home prices cannot rise faster than incomes and inflation indefinitely.”

It’s been a rough year across the board for a lot of people. But a stronger financial foundation throughout the country is a pretty decent farewell.

#EconomicRise

Matt Salter is a writer and former fundraising and communications officer for nonprofit organizations, including Volunteers of America and PICO National Network. He’s excited to put his knowledge of fundraising, marketing, and all things digital to work for your reading enjoyment. When not writing about himself in the third person, Matt enjoys horror movies and tabletop gaming, and can usually be found somewhere in the DFW Metroplex with WiFi and a good all-day breakfast.

Homeownership

FHFA extends rent moratoriums through August

(HOMEOWNERSHIP) Don’t freak out about the FHFA extending the moratorium, while many in the pay chain are affected, here’s what it means for Real Estate.

Published

on

FHFA moratorium

As millions of Americans lost their jobs at the beginning of the Coronavirus pandemic, the FHFA announced a temporary prohibition of evictions and foreclosures that was set to expire on June 30. After reevaluating the job market and the record low unemployment rate, the FHFA extended this moratorium through August 30.

However, never did the FHFA nor the federal government put a hold on the rent, utility bills, or car insurance. Instead, most peoples’ bills have become endless. It’s a full circle here, those who can’t pay their rent impact their landlords ability to pay rent, so on and so forth.

The FHFA moratorium extension allows Americans to attempt to catch up on their bills as their jobs open back up. That said, there will be a glut of rental inventory as thousands of residents have been laid off or furloughed and can’t possibly come up with several months’ worth of rent. The long term effects will ripple through the sector, from rent decreases in some areas, to vacancy levels plummeting in others.

That said, industry experts maintain that while the industry will slow due to the global pandemic, the housing sector will be revived toward the second half of the year. It is not expected to be at full steam within this calendar year, however.

NAR President Vince Malta recently commented on existing home sales, “Although the real estate industry faced some very challenging circumstances over the last several months, we’re seeing signs of improvement and growth, and I’m hopeful the worst is behind us.”

But landlords are in a different boat than the rest of the sector, and have a certain struggle ahead. Some refused to be flexible with renters, while others have sought ways to retain residents without having vacancies or having to invest in turning a unit. This moratorium helps many renters, but landlords, particularly private landlords (not multifamily) will be hard hit.

Continue Reading

Homeownership

4 million homeowners skip mortgage payments as forbearance requests slow

(REAL ESTATE) It is no surprise that mortgage payments are being skipped across the nation, but it’s not all a total loss…

Published

on

home mortgage payments

Over 4.1 million American homeowners are currently skipping their mortgage payments on a temporary basis as COVID-19 keeps the economy shut down, according to the Mortgage Bankers Association (MBA).

Meanwhile, forbearance requests have slowed – the MBA’s weekly survey indicates that 8.16 percent of total loans are now in forbearance plans, up from 7.91 percent the week prior, and while the share of loans in forbearance is rising, the trend is toward requests decreasing.

Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, said in a statement, “There has been a pronounced flattening in loans put into forbearance – despite April’s uniformly negative economic data, remarkably high unemployment, and it now being past May payment due dates.”

Congress passed the $2.22 trillion CARES Act (the Coronavirus Aid, Relief, and Economic Security Act), under which homeowners holding a federally backed home loan may delay mortgage payments for up to a year, but politicians are quick to remind folks that the money is still due, and fees may still apply during the forbearance period.

This relief effort is the primary reason so many did not pay their mortgage this month. People are still unsure of whether or not they will be employed in the near future, and are managing their finances accordingly, particularly while lenders are still in the mood to negotiate. Economists believe that difficulties will be ongoing, and homeowners will continue to struggle as a whole.

While our economy hasn’t been hit this hard since the Great Depression, and unemployment numbers reveal widespread economic devastation, slivers of hope remain. Forbearance requests slowing isn’t the only housing hope – new home construction levels are down, but nowhere near at the same pace as other sectors harder hit.

Continue Reading

Homeownership

Find out if your rental home is under the 120-day federal eviction moratorium

(HOMEOWNERSHIP) COVID-19 has thrown many certainties into chaos, but heres a beacon of light if you are worried about paying rent and if you will fall victim to eviction.

Published

on

Proactively prevent foreclosure eviction

The Texas Supreme Court extended a moratorium on evictions through April 30. Dallas County’s moratorium runs through May 18. Tarrant County, next to Dallas County, has an indefinite moratorium. Meanwhile, cities, counties, and states across America have different moratoriums.

The CARES Act includes a federal eviction moratorium that begins on March 27 and lasts for 120 days.

Federally subsidized housing cannot evict tenants for non-payment for 120 days. If you’re like most renters, you may not know if your property is backed a federal program, such as HUD, FHA, USDA or Fannie Mae and Freddie Mac.

Here is a searchable database helps renters identify if their home is covered by the CARES Act

The National Low Income Housing Coalition offers a searchable database of homes that are covered by the CARES Act. Please note that the database is not comprehensive. Just because your home isn’t listed, doesn’t mean that the CARES ACT doesn’t apply.

The NLIHC offers updates on COVID-19 housing issues. They also have a page for state housing assistance. Low income households in Austin may qualify for assistance through the Austin Tenant Stabilization Program. Share that program with tenants and landlords to prevent evictions.

Eviction moratoriums do not mean that tenants don’t have to pay rent or late fees.

Tenants and landlords need to work together to find a solution to paying rent during the COVID-19 pandemic. The eviction moratorium is not a rent freeze. When life gets back to normal, tenants will still owe back and current rent or risk eviction.

We wrote that the National Multifamily Housing Council is recommending that its members waive late fees and administrative costs and help residents with payment plans.

It’s going to take everyone working together to keep families stable after the pandemic. We will do our best to keep you updated on any new options and helpful programs.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox