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In this Real Estate News Brief for the week ending April 17th, 2021... home builders are stepping on the gas, rents are headed “up” once again, and the best days to list your home. Economic News We begin with economic news from this past week. Federal Reserve Chairman Jerome Powell offered more clarity on when the central bank plans to start the tapering process. The Fed has been buying $120 billion worth of Treasurys and mortgage-backed securities each month since last summer as an economic shot in the arm. It also cut interest rates to zero. The Fed expects to begin tapering when the economy reaches full employment and a stable rate of inflation at 2% or slightly more. And, Powell says, that would happen well before any interest rate increases. After the 2013/2014 tapering process began, it took another two years for a rate hike. Powell says the Fed will follow a similar strategy. He didn’t give a date as to when this would happen. Some economists are predicting that tapering will begin next year. Others sa

Airbnb is taking another proactive step to prevent house parties over the Fourth of July weekend. It launched a new campaign called “Summer of Responsible Travel” which bans one-night rentals and last-minute bookings for guests who don’t have a history of good reviews. The July 4th holiday is turning into what many feel is the BIG REOPENING after more than a year of social isolation from the pandemic. Airbnb said in a statement: “We also know that public health and safety experts are still saying mass gathering should not happen.” And that’s why the short-term rental company is introducing the new rules. They are similar to ones that Airbnb implemented for Halloween and New Year’s Eve last year. Airbnb describes the summer travel initiative as an 8-point plan to help hosts, guests and communities remain safe. At the top of that list of rules is a ban on parties that could spread germs, and could also disturb neighbors. To help with the enforcement of this rule,Airbnb has expanded its community support staff b

There’s a new plan brewing to help delinquent borrowers and prevent another wave of foreclosures. The Consumer Financial Protection Bureau wants to extend the foreclosure moratorium through the end of this year and is currently asking for comments on the plan. But does the CFPB have the authority to do this? According to the Mortgage Bankers Association, 2.7 million homeowners were in forbearance programs as of January 31st of this year. That’s down from a pandemic peak of some 6 million homeowners, but it’s a substantial number of homes at risk of foreclosure. Black Knight estimates the number of mortgages that are currently 90 or more days past due is about 2 million. And that’s about five times higher than before the pandemic began. The real estate data firm expects some improvement through the end of June, when the current foreclosure moratorium expires, but it expects that 1.8 million mortgages will still be seriously delinquent. The MBA says the delinquency rate for one-to-four-unit residential properti

In this Real Estate News Brief for the week ending April 10th, 2021... an economic forecast from the International Monetary Fund, home price growth around the world, and a survey on having pets at work. Economic News We begin with economic news from this past week, and an upbeat forecast from the International Monetary Fund. The IMF raised its 2021 U.S. economic outlook from 5.1% to 6.4%. It expects to see a slowdown next year to 4.4% which is stronger than the Federal Reserve’s 3.3% prediction. The IMF also expects that pandemic-related losses for other major economies will be smaller than what we saw after the financial crisis. It is expecting global growth to be just slightly less than the U.S. this year, and about the same next year. The IMF also expressed support for the Fed’s “go slow” policy on interest rate hikes and tapering. The IMF’s chief economist, Gita Gopinath, says: “They have pledged to, kind of, given sufficient advance warning if they are going to reverse course… so we expect that would hap

Home buyers are making all sorts of sacrifices in today’s market. Without enough homes to meet demand, some buyers are eliminating contingencies and offering way more than the listing price. That may be a simple transaction if you’re paying cash, but for those getting a loan, a “gap” between the sky-high amount offered to clinch the deal and the appraised value of the home could be a deal breaker. A lot of buyers are resorting to extreme measures to win the home they so desperately want to buy. They may offer $50,000, $100,000 over asking and waive ALL contingencies, meaning that if they back out, they lose their deposit. And then when it comes time to get the house appraised, buyers are finding out that the lender will only cover, let’s say, 80% of the appraised value. That means the buyer’s down payment must include the other 20% PLUS any amount the buyer offered to win that home. That’s left some buyers scrambling to make up the difference for what’s being called “the appraisal gap.” HousingWire heard from

Remote work has become a dream come true for many people. But, can it also become too much of a good thing? One UC Berkeley researcher predicts that cities will thrive again once the pandemic is under control. His arguments are compelling and support the idea of a metropolitan or suburban lifestyle with fewer days at the office and commutes that are easier because highways are less congested. UC economist Enrico Moretti spoke with Vox about his forecast for the return of “superstar cities.” He talks about how highly skilled workers like to congregate in different metros, and why that trend is probably not going to go away -- although some amount of the urban to suburban shift may remain. Living in the suburbs is still within driving distance of the city and many major companies, making it an attractive option for a hybrid work schedule. The academic term for the clustering of different industries in certain cities is called “agglomeration.” Moretti says it’s one of the most important concepts for understandin

In this Real Estate News Brief for the week ending April 3rd, 2021... an economic update from Fannie Mae, a surge in consumer optimism, and the return of the cicadas. Economic News We begin with economic news from this past week, and an updated economic forecast by Fannie Mae. The mortgage guarantee enterprise is expecting real GDP growth to hit 8.4% in the second quarter of this year, and 6.6% for the full year. It is anticipating the GDP to settle down a bit in 2022. Currently, risks to the economic recovery are viewed as neutral. That includes the future path of COVID-19 and its variants, the easing of social restrictions, and whether consumers will start spending more money from their personal savings. The housing market is expected to remain resilient with purchases hitting $1.82 trillion this year. That’s up from $1.61 trillion last year. Rising interest rates are not expected to have much of an impact. Fannie Mae’s chief economist Doug Duncan says: “While we forecast some continued upward movement, mor

When the world shut down because of COVID-19, few people thought their work routine would change so drastically. It’s now more than a year since the virus forced people into a remote work environment, and with the pandemic threat diminishing, there are big questions about the best way to shift to a more hybrid model that combines workplace with work-from-home. www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending March 27th, 2021… the state of the economy from Treasury Secretary Yellen and Fed Chief Powell, what some see as a co-working rebound, and a new demand for golf course homes. www.NewsForInvestors.com Links: 1 - https://www.cnn.com/2021/03/23/economy/janet-yellen-jerome-powell-economy-recovery/index.html 2 - https://www.marketwatch.com/story/consumer-spending-sinks-in-february-and-inflation-creeps-higher-11616763768?mod=economy-politics 3 - https://www.marketwatch.com/story/u-s-gdp-growth-in-fourth-quarter-raised-slightly-to-4-3-11616677670?mod=economic-report 4 - https://www.marketwatch.com/story/u-s-unemployment-claims-sink-to-684-000-and-hit-lowest-level-since-pandemic-11616676886?mod=economy-politics 5 - https://www.marketwatch.com/story/new-home-sales-plummet-amid-bad-weather-but-analysts-remain-upbeat-on-construction-activity-11616508567?mod=economy-politics 6 - https://www.marketwatch.com/story/new-home-sales-plummet-amid-bad-weather-but-analysts-remain

The push continues for a solution to lumber shortages and skyrocketing lumber prices. A large number of sawmills were shut down early last year, creating a major shortage of lumber for the construction industry. While there’s hope that sawmills will return to full capacity as people get vaccinated and social distancing mandates are relaxed, the National Association of Homebuilders is urging policymakers to find solutions right now. www.NewsForInvestors.com Links:   1 - https://www.nahb.org/advocacy/top-priorities/material-costs/solving-the-lumber-crisis   2 - https://nahbnow.com/2021/02/record-high-lumber-prices-add-24k-to-the-price-of-a-new-home/   3 - https://www.cnbc.com/2021/03/17/housing-starts-february-2021.html#:~:text=and%20construction%20activity.%22-,Housing%20starts%20fell%2010.3%25%20to%20a%20seasonally%20adjusted%20annual%20rate,on%2Dyear%20basis%20in%20February.   4 - https://nahbnow.com/2021/03/lumber-prices-stalling-much-needed-multifamily-and-affordable-housing-supply/?_ga=2.24865850.18277184

Individuals across the U.S. are getting a new round of stimulus checks worth more than $410 Billion. This is the third time the government has handed out money because of the pandemic. While many people are still suffering financially, the economy is also recovering, and that’s raising a lot of questions about whether people should save, spend, or invest their checks. So what should individuals do with their stimulus checks? I thought I’d cover some of the ideas and recommendations I’ve been seeing in the news, and what many people say they are planning to do with their checks. www.NewsForInvestors.com Links:   1 - https://www.bloomberg.com/news/articles/2021-03-16/biden-stimulus-check-1-400-best-investment-ideas-save-or-spend-it   2 - https://www.marketwatch.com/story/americans-ready-to-plow-10-of-stimulus-checks-into-bitcoin-and-stocks-survey-says-11615823512   3 - https://www.yahoo.com/lifestyle/young-investors-are-putting-stimulus-checks-into-stocks-and-bitcoin-152629197.html   4 - https://finance.yahoo.c

In this Real Estate News Brief for the week ending March 20th, 2021... why homebuilder confidence took a dip, why we won’t have a spring home-buying season, and superstitions that discourage homebuyers.   We begin with economic news from this past week, and new assurances from the Federal Reserve about economic growth and inflation. While Fed officials expect to see a GDP OF 6.5% this year and inflation slightly higher than 2%, they have no plans to raise interest rates in 2021.   www.NewsForInvestors.com   Links:   1 - https://www.marketwatch.com/story/fed-sees-no-rate-hikes-through-2023-despite-some-inflation-overshoot-11616004261?mod=MW_article_top_stories   2 - https://www.marketwatch.com/story/unemployment-claims-jump-to-one-month-high-of-770-000-as-texas-applications-surge-11616071511?mod=economy-politics   3 - https://www.marketwatch.com/story/new-home-construction-falters-due-to-februarys-winter-storms-but-support-for-a-home-building-frenzy-remains-11615985107?mod=economic-report   4 - https://www.mar

New risk reduction policies at Fannie Mae could make it harder to get loans for single-family second homes and investment properties. The GSE sent letters to lenders saying it will impose a new 7% limit on the acceptance of those kinds of loans. Fannie is currently accepting a higher percentage. So what does that mean for investors? www.NewsForInvestors.com  

Dozens of New York City landlords are being accused of discriminating against people with housing vouchers. A housing rights watchdog group filed a federal lawsuit against 88 brokers and landlords after an undercover operation that involved recorded phone calls. The state of New York made it illegal to discriminate against tenants based on their source of income in 2019. That includes people who use Section 8 vouchers to pay their rent as well as other forms of assistance like child support, alimony, foster care subsidies, and veterans benefits. There are a few exceptions that include rentals in one- or two-family homes but only if they are occupied by the owner. www.NewsForInvestors.com Links:   1 - https://ag.ny.gov/sites/default/files/source_of_income_discrimination.pdf   2 - https://www.nytimes.com/2021/03/15/nyregion/real-estate-lawsuit-section-8-discrimination.html   3 - https://www.nmhc.org/research-insight/analysis-and-guidance/source-of-income-laws-by-state-county-and-city/

In this Real Estate News Brief for the week ending March 13th, 2021… a $1.9 Trillion economic rescue, iBuyer 2021 rebound, and a Zillow hiring spree. We begin with economic news from this past week, and the approval of a $1.9 Trillion COVID-19 relief package. The National Association of Realtors is applauding the high-dollar stimulus plan because there are several provisions that will help the housing market, including another $21.55 billion in rental assistance. Landlords who are owed back rent will benefit from those funds, and the previous $25 billion approved in December. $1,400 stimulus checks for individuals will also help the back rent situation. There’s also money to help homeowners struggling to pay mortgages, as well as small businesses, schools, and local governments that are low on cash. www.NewsForInvestors.com Links:   1 - https://magazine.realtor/daily-news/2021/03/11/biden-signs-covid-19-rescue-package-into-law   2 - https://www.marketwatch.com/story/consumers-pay-higher-prices-in-february-cpi

The pandemic has increased renter preferences for certain amenities, and one New York City website has come up with an interesting list of “must haves.” It’s a top 10 list that was compiled from search results in December and January by apartment listing website StreetEasy. People have been spending more time at home since the start of the pandemic, and that’s changed a lot of priorities about our home space. Although there are many preferences on this list that are geared toward apartment buildings, several apply to any kind of rental situation. www.NewsForInvestors.com Links:   1 - https://streeteasy.com/blog/apartment-amenities-new-yorkers-want-most/   2 - https://www.nytimes.com/2021/03/11/realestate/which-amenities-are-most-popular.html    

“The 2020’s will be the decade of the hyperloop.” Those are the words of Virgin hyperloop co-founder Josh Giegel just a few months after the company conducted its first passenger test. Giegel was one of the two people on board the. Virgin now expects its system to be up and running for the public by the end of this decade. www.NewsForInvestors.com Links: 1 - https://virginhyperloop.com/ 2 - https://www.radio.com/kxnt/articles/press-release/virgin-hyperloop-has-successful-test-in-nevada-desert 3 - https://virginhyperloop.com/press/results-midwest-hyperloop-study 4 - https://www.star-telegram.com/news/coronavirus/article244517722.html 5 - https://gizmodo.com/north-carolina-is-eyeing-a-hyperloop-one-system-for-the-1836318917 6 - https://www.forbes.com/sites/geekgirlrising/2020/12/08/san-francisco-to-la-in-35-minutes-virgin-hyperloop-moves-closer-to-reality/?sh=4f2dfc8b5274 7 - https://clevelandmagazine.com/in-the-cle/news/articles/cleveland-to-chicago-in-28-minutes-hyperloop-moves-forward?fbclid=IwAR2QRUk2mumJxq

In this Real Estate News Brief for the week ending March 6th, 2021… new concerns about inflation, signs of a job market rebound, and gender bias in the mortgage market.    We begin with economic news from this past week, and a stock market roller coaster that had real estate investors breathing a sigh of relief. Many of the high-flying tech stocks went south in response to concerns about inflation after Treasury yields spiked  a few times. Economists are also worried that the $1.9 trillion fiscal stimulus package that Congress is trying to pass will overheat the economy, and that recent signs of inflation are just the beginning.   www.NewsForInvestors.com   Links:   1 - https://www.marketwatch.com/story/powell-sends-warning-to-markets-that-fed-doesnt-want-persistent-tightening-in-financial-conditions-11614879804?siteid=bnbh   2 - https://www.marketwatch.com/story/u-s-economy-adds-379-000-jobs-in-february-as-hiring-speeds-up-11614951413?mod=home-page   3 - https://www.marketwatch.com/story/u-s-unemployment-cla

Selling a home is about to get cheaper as the result of an antitrust lawsuit. Because of a settlement between the National Association of Realtors and the Department of Justice, the fees that sellers pay to buyers will be publicly displayed on listing pages. Redfin is already doing it in many markets, and other real estate websites are expected to follow suit in the coming months. That kind of transparency typically results in more competition and lower rates. www.NewsForInvestors.com  

A Texas judge has ruled the CDC’s nationwide eviction moratorium is unconstitutional. It’s been in effect since last spring because of the pandemic, and has put some landlords in a tough spot because they can’t afford to support tenants who aren’t paying rent. The ruling stopped short of an injunction, and it’s now being appealed by the Department of Justice. www.NewsForInvestors.com