April 9, 2021 Watch out in Miami, Los Angeles, and Tampa, Fla.: These places can be hotbeds for termites, according to Orkin’s 2021 Top 50 Termite Cities List.Orkin, a national pest
How Resilient Is the Housing Market? ☘ Hoey Team ☘ eXp Realty
Dated: June 26 2020
The housing market is recovering much faster than most other sectors in the economy in the current recession. But will it last?
Unemployment remains high—at around 13%—and economic forecasters predict unemployment likely will remain elevated for the remainder of the year. However, economists believe housing will be able to weather most of the economic storm.
The current housing shortage and homeowners’ strong equity positions will likely rescue real estate from any downturn that would be similar in scope to the 2008 financial crisis, economists said during the “Economic Outlook and Housing Trends” webinar Wednesday, hosted by Freddie Mac and the Down Payment Resource.
“Real estate demand has staged a remarkable comeback, and given the chronic supply shortage, the rebound in demand should provide support to home prices,” said Sam Khater, Freddie Mac’s chief economist.
So far, data suggests the economy hit its low point during the first two weeks in April and has been steadily improving since. Still, the economy is significantly below its pre-March levels when the COVID-19 outbreak took hold in the U.S. While real estate demand declined at similar rates to the broader economy, the housing market is making a much more pronounced recovery than most other segments of the economy, Khater said.
This Isn’t the 2008 Crisis
“The housing market has held up much better than expected,” Laurie Goodman, co-director of the Housing Finance Policy Center at Urban Institute, said during the webinar. “Homeowners have been much less affected by COVID-19 than renters.”
A big reason for that is because the housing market has been underbuilding and unable to keep up with population demand since 2009, Goodman said. The country is undersupplied by an estimated 2.5 million housing units. “The supply-and-demand imbalance is continuing to put upward pressure on home prices and is causing them to rise,” Goodman added.
Further, owners have accumulated a great deal of equity in their homes over the last decade—and still-rising home prices are only adding to that. “This has given the housing market a resiliency that it didn’t have back in the 2008 financial crisis,” Goodman said.
Deferred Sales Unleashed, But for How Long?
In recent weeks, mortgage applications for home purchases have posted a strong rebound, even surpassing levels well beyond what they were a year ago. Record low mortgage rates are enticing buyers who had been waiting on the sidelines prior to the pandemic to make a move as well as motivating renters, Khater said.
“It’s remarkable that in the last recession it took us 10 years to reach normal levels” again with purchase mortgage applications, Khater said. "In this recession, it took us less than 10 weeks.”
However, Khater cautioned that mortgage applications for home purchases will likely moderate after this current “bulge in deferred sales” subsides.
“The economic recovery is underway, but uncertainty is very high,” Khater said. Federal stimulus programs will expire in the coming weeks. “Stimulus is flowing through and sustaining consumer spending and balance sheets for now, but there is concern that a fiscal cliff is just around the corner and may put the brake on recovery,” he said.
Here are some additional housing indicators highlighted at Wednesday’s webinar:
Home prices stand firm. Home prices are rising, but growth is expected to moderate over this year and next. However, economists are not predicting any declines in home prices. The National Association of REALTORS® is projecting home prices to be up about 4% in 2020 and 2021; CoreLogic and Freddie Mac’s forecasts are more subdued but still have home prices rising at about 2.5% in 2020 and 2021. So far, home prices have not gone down during the pandemic and actually have increased. “This really speaks to the lack of inventory on the market,” Khater said. “It’s still a seller’s market—even in the worst recession since World War II.”
Personal income is rising. Despite surging unemployment numbers, incomes are rising. Personal income increased to a record $2 trillion in April. But that rise was entirely driven by the economic stimulus from the federal government, Khater said. “Money is flowing into the economy and supporting customers, but in July there could be a fiscal cliff,” Khater says. “The concern is that that the stimulus supported consumer spending, but that could go down again when it expires.”
Foreclosure wave unlikely. Khater does not anticipate a large uptick in foreclosures in 2020 or 2021. “Homeowners have record equity, home prices continue to rise, and there’s federal forbearance support,” Khater said. “Homeowners—at least so far—seem to be much less impacted by the recession.”
Some populations are being hit harder than others. Khater pointed to data that showed Hispanics and Asian populations in the U.S. have seen the largest declines in employment during the current recession. Their declines have been four times larger than the last recession. “There are longer-term concerns around the recession’s impact on inequality,” Khater said.
In addition to re-sale property, please keep in mind that the Hoey Team ☘ helps buyers with many aspects of New Construction in all type Communities. There is much to think about when considering New Construction, the sales people work for the builder, we work for you; and uptimately save you not just financially but in many other ways; we hear and see too many horror stories, with people buying New Construction and not doing their due dilligence.
Here in Southwest Florida, inventory is low, but we continue to list and sell real estate. At our Team ☘ and Brokerage, we have been succesfully working 100% virtually / remotely for the past number of years as we grew, so we have been used to this new requirement, and we just had our eXp shareholders summit, virtually, using VirBELA, which powers eXp World; our virtual campus.
Article content from our National Association of Realtors (NAR) Magazine Newsletter and from other sources including Hoey Team ☘ eXp Realty and IRS
On this page we are adding a list of Vendors for COVID-19 related items here in SWFL. Please let us know if there is a Vendor / Store we should add: www.VisitCollier.Com Feel free to share with anyone looking.
NOTE for Buyers and Sellers: On our "VIRUS FREE" Hoey Team ☘ VIRTUAL OPEN HOUSE Page you may WATCH ? Detailed HD 3D Immersive VIDEO ? Walkthrough Tours for all our COMING to MLS & AVAILABLE LISTINGS without any Coronavirus; COVID-19 worries right HERE: ? www.SWFLVRE.com ? ?
For more Real Estate related information as we go throught this COVID-19 experience, or if you have questions on any aspect of Buying, Selling, Upsizing, Downsizing, Moving within or Relocating to or from Florida (the number 1 state for people to move to), or on any aspect of the Real Estate Market, Locally, Nationally or Internationally, please let us know, we can help, we can address / answer your questions, and we are always available to help you or someone you know.
P.S. --> If You'd like for me to create a regular Video Tour for ANY of the Properties on our website, just CLICK "Video Request Button"; from property details. We can visit the property and record you a video, or, if you want, we can do a one on one Facebook Live Showing: https://HoeyTeam.239RealEstateDeals.Com
Hope Everyone Remains Safe; we are all in this together; and we trust that we will get through this Coronavirus COVID-19 pandemic more united, as one, with as little loss as possible.
Please let Kim or Barry know if we can do anything to help anyone in need here in Southwest Florida, weither it is for you or for a loved one, and we are able to help in a responsible social distncing way, we will certainly do what we can to help.
Also; please check out the other blogs, and tabs to many other Links, Updates, Reports & Stats that we have here on our informational website. ☘
We hope that you find the information useful. If you have any questions, please do not hesitate to contact Barry or Kim with the Hoey Team ☘ brokered by eXp Realty
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Most of our business is referrals by word of mouth; from past Sellers and Buyers who we have helped; please ask for and check out our testimonials and Sales Stats. Thanks, Barry & Kim ☘”
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