eviction moratorium
Apache is functioning normally
Update: December 24
House Republicans blocked an effort by House Democrats to approve $2,000 stimulus payments for millions of Americans, leaving the fate of the proposed $900 billion stimulus package mired in doubt.
It likely won’t come in time to wrap it up and put it in your stocking, but Congress has officially passed a stimulus package. The $900 billion stimulus package includes a $600 payment to every qualifying adult and child. But before you start planning to spend the money, there are a few things you’ll need to know.
Use your first stimulus check to bulk up your emergency fund – earn a high APY with a Chime® Savings Account
The bill includes relief for those who fall below a certain income threshold, as well as loans for small businesses and support for vaccine distribution. Here’s what you need to know about a possible second stimulus check coming your way.
What’s Ahead:
Who qualifies for the second stimulus?
As with the first stimulus payment, not everyone will qualify to receive a payment. To receive the full amount, your adjusted income will need to have fallen below $75,000 in the 2019 tax year. If your income was $75,000 or more, that $600 will be reduced by 5% for every $100 you made above the AGI limit.
Like the previous payment, the amount phases out entirely for taxpayers who hit a certain income threshold in 2019. Single filers who made $87,000 or more, joint filers earning $174,000 or more, and heads of households earning $124,500 will not receive a stimulus payment at all.
Best of all, the relief payment includes a $600 check for qualifying dependent children. You’ll get $600 for each child under 17 that you claim as a dependent on your taxes. Dependents aged 17 and older won’t qualify for a second stimulus check.
Why do we need a second round of stimulus checks?
The effects of the coronavirus pandemic are still being felt. While unemployment has dropped to 6.7%, it’s been a rough year for the U.S. economy. And there is still growing concern about the economic effects of COVID-19. Shutdowns have begun again as numbers increase, and the Fed has predicted a subdued economy through 2021. Efforts like stimulus payments can help keep businesses open when consumers might otherwise stop spending.
The second round of stimulus checks will inject more money into your pocket, and ultimately the economy (at least that is the hope). In doing this, it could spark another burst of economic growth, combined with other stimulus package dollars being infused, as well as what the Fed is doing to help economic growth (most recently they began buying corporate bonds).
What if my income dropped in 2020??
The stimulus payments are based on your 2019 taxes. But for many, the pandemic has caused that income to drop dramatically in 2020. If you earned $87,000 or more ($174,000 as a joint filer) in 2019, you won’t receive a second check right now, even if your 2020 income was significantly less. But that doesn’t mean you won’t receive one at all.
If your circumstances have changed, though, you’ll be able to claim the COVID relief payments as a credit on your 2020 taxes. Fortunately, this setup doesn’t work in reverse. If your income increased in 2020 and would put you over that threshold, you’ll still receive a second check based on your 2019 taxes. You don’t have to return either payment.
How soon will I receive my stimulus payment?
Your next question is probably, “When will I see the money?” That’s where the good news comes in. As soon as the President signs the bill, payments can begin being issued. According to Treasury Secretary Steven Mnuchin, “People are going to see this money at the beginning of next week.”
As with the previous stimulus check, though, your payment turnaround will depend on the payment information the IRS has for you. For the fastest payment, you’ll need to have direct deposit set up. If the IRS doesn’t have your banking information, your payment likely won’t come until after the first of the year. Even then, though, Mnuchin doesn’t expect paper checks or prepaid cards to take as long as they did with the first round.
Will I still get a check if I didn’t file a 2019 tax return?
As with the first round of stimulus payments, the second round will go to both filers and non-filers. As with the first stimulus payment, those who receive Social Security will be automatically issued a stimulus payment. Things get a little more complicated for those who don’t pay taxes.
One thing that’s changed with the second payment is that the IRS won’t consult your 2018 tax return if you didn’t file for 2019. However, the bill has expanded the sources the government can use to issue your payment. Instead of being limited to the Social Security Administration and your tax records, the IRS can now pull information from the Social Security Administration, Railroad Retirement Board, or Department of Veterans Affairs.
Is it taxable?
As with the first stimulus payment, the second one will not be taxable. It’s a tax credit, paid in advance, and it has no impact whatsoever on your tax refund. You’ll include it on your tax return, but it won’t be counted as part of your yearly income. You’ll also get the full amount of any refund you’re due next year regardless of whether you received a stimulus payment or not.
Will part or all of my payment be used to settle debts?
This is where the second payout differs from the first. This new bill specifically states that the funds can’t be garnished by creditors or debt collectors. As before, your payment can’t be held to pay government debts, including past-due taxes.
But what if you owe back child support? Unlike the first round, the second stimulus check can’t be held to pay past-due child support. The first stimulus payment didn’t have that protection.
What if my spouse doesn’t have a Social Security number?
The first payment went only to those who had a Social Security number. This affected spouses who filed jointly with those people. With this second payment, if you’re married and have a Social Security number, you’ll receive a payment even if your spouse doesn’t have one. You’ll also qualify for your under-17 dependent child to get a payment, even if only one spouse has a Social Security number.
This change doesn’t just apply to the second payment, though. If you’re married and one of you has a Social Security number, that person will be able to get the amount of the first credit retroactively. Simply apply for $1,200, plus $500 per qualifying child, as a recovery rebate when you file your 2020 taxes.
What if I’m unemployed? Does the stimulus package include funding for expanded unemployment insurance?
If you’re unemployed, the package includes a little extra relief for you. You may qualify for $300 extra every week in extra unemployment. These benefits will be for 11 weeks, running from December 26th to March 14th. The Pandemic Unemployment Assistance program for freelancers and any state-specific benefits are also extended under the bill.
Another item in the bill that’s bringing sighs of relief is the expansion of the eviction moratorium. The original protections were set to expire on December 31st, which could have left millions at risk for homelessness. Unlike the unemployment extension, though, the eviction moratorium only lasts through the end of January.
Does the bill include protections for small business owners?
Small businesses have been hit pretty hard by COVID-19, and this bill seeks to help a little. The new bill includes $284 billion for small business loans under the Paycheck Protection Program, which expired in August. The bill expands that program with some changes.
One of the biggest changes is that this new bill targets smaller businesses. To qualify, a small business must have fewer than 300 employees. A business must also have seen at least a 25% reduction in revenues during at least one quarter in 2020.
What else is included in the bill?
In addition to extending the moratorium on evictions, the new bill also includes $25 billion for tenants who are having a tough time paying rent. Those receiving benefits under the Supplemental Nutrition Assistance Program (SNAP) will see benefits expanded by 15% for four months.
The bill also includes $69 billion in funding to get the vaccine to the public. This funding will be provided to state, tribal, and local governments to help cover the cost of distributing and administering the vaccine.
Summary
Although the bill is available to read, the IRS will likely provide more information on when the funds will be available. Watch the IRS Coronavirus Tax Relief and Economic Impact Payments news page for the latest information.
In the meantime, check out this list of side hustles so you can make some extra money while you’re waiting on your stimulus check. This way, you can in effect, create your own stimulus.
Read more:
Source: moneyunder30.com
Apache is functioning normally
Last April, we shared our optimistic opinions regarding American housing markets. Now, nearly five months later, real estate expert Kelly Skeval joins us as we ask once again: bubble or boom? Listen in and learn where we stand now and whether or not we’re still investing in real estate. We also offer recommendations for real estate agents and investors as we close in on the fourth quarter of 2021. And as always, we cover recent real estate news, including updates on the ongoing legal battle between the NAR and the DOJ, the possibility of another nationwide eviction moratorium, and more.
Listen to today’s show and learn:
- What’s new with New York real estate [1:40]
- The problem with hardship-declaration forms [2:53]
- Lessons learned as a landlord in 2021 [4:02]
- Elizabeth Warren’s bill to enact another nationwide eviction moratorium [8:12]
- Real estate boom or bubble? [11:37]
- Buyer clients’ biggest reasons for purchasing homes right now [15:48]
- The typical credit score of 2021’s borrowers [16:51]
- Supply issues plaguing today’s homebuilders [21:30]
- Amazon lobbies to legalize marijuana [25:19]
- Mortgage demand surges as inventory increases [26:47]
- NAR vs. the DOJ [31:43]
- The fight for public access to the MLS [35:18]
- The mega mansion that no one wants [36:59]
- Kelly’s meet ups for prospective real estate investors [38:18]
- Boom or bubble? We want your feedback! [43:35]
Related Links and Resources:
Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
-Aaron Amuchastegui
Source: hibandigital.com
Apache is functioning normally
Over 10 million Americans are behind on rent due to the effects of COVID-19. The relief bill passed in late December extends benefits and protections to Americans hard-hit by the pandemic, including $25 billion in rental assistance funds.
Designed to help Americans who are struggling to afford rent and are at risk of homelessness, rental assistance funds are available for those who have lost income as a result of the pandemic and meet certain maximum income thresholds. Funds could cover up to twelve months of rent and utilities for those who qualify, plus an additional three months if funds are available.
What’s Ahead:
How to determine if you qualify for rental assistance
In order to qualify for rental assistance, you need to demonstrate that the pandemic has adversely affected you or your household. If a member of your household qualifies for unemployment or has otherwise lost their source of income, you may qualify.
Applicants also need to show that they’re at risk of becoming homeless by demonstrating past due rent or utility bills. Your household must make under 80% of the median income in your area in order to qualify, and funds will be prioritized for applicants making under 50% of the median income.
Your income can refer either to your total household income for 2020, or your monthly household income when you apply. If the assistance is based on your monthly income, you’ll need to document your income eligibility every three months.
How to apply for rental assistance
How you should apply for rental assistance depends on where you live. Different states and cities have different application processes, and many partner with existing organizations or charities in order to effectively distribute funds.
You can look up COVID-19 emergency rental assistance programs in your area using the National Low Income Housing Coalition’s rental assistance tool. If you’re having trouble finding a program, you can get in touch with your representatives, your state’s housing department, or local housing groups in order to get help.
Applications can be submitted by eligible individuals or by their landlords. If your application is accepted, funds will generally be paid directly to your landlord and service providers. You can reapply for additional assistance if necessary.
How much you could receive
Eligible applicants can receive as much as up to 12 months of assistance, plus an additional three months if funds are still available.
Payment for past-due rent that could result in an eviction is prioritized. This means that, while the actual funding amount depends on how much your rent and utility bills are, funding is designed to cover up to a year of rent and related expenses for Americans impacted by the pandemic.
What to do if you’re facing eviction
If you’re facing eviction, you should apply for relief funds as soon as you can. You should also fill out an Eviction Declaration Form and give it to your landlord in order to qualify for the extended eviction moratorium. The moratorium has been extended by President Biden until at least the end of March via executive order.
Individual states and cities may also have additional orders in place to protect renters against eviction. If your landlord refuses to comply with the eviction moratorium, you can get legal help.
What to do if you don’t qualify
Even if you don’t qualify for rental assistance, you could still be eligible for other pandemic relief programs. These include stimulus checks and expanded unemployment benefits.
Stimulus checks
Otherwise known as Economic Impact Payments, stimulus checks are available for Americans who meet certain maximum impact requirements. In addition to the $1,200 payments passed in the spring, many Americans are now eligible to receive an additional $600 thanks to the bill passed in December. You may qualify if your income is under $75,000 for individuals and under $150,000 for households. Parents and guardians can also receive $600 for each eligible child.
As part of President Biden’s proposed new stimulus package, Americans may also be eligible for an additional $1,400 check if the bill passes. This check, along with the previous $600 check, is designed to add up to a total of $2,000. However, the amount of this third check isn’t yet set in stone, and it may end up being higher or lower than $1,400 if the bill passes.
Unemployment benefits
The December relief bill also extended unemployment benefits after a gap in coverage. These benefits include an additional $300 per week on top of regular unemployment benefits, extending up to March 14th. The benefit is available for workers who earn at least $1 in state unemployment benefits.
Pandemic Unemployment Assistance for freelancers and self-employed individuals is also extended until March 14th. A new unemployment benefit for workers called the Mixed Earners Unemployment Compensation program, adds $100 to unemployment benefits for workers who are both traditionally employed and self-employed if they earn at least $5,000 in self-employment income per year and are already receiving Federal Pandemic Unemployment Compensation.
Eviction moratorium
President Biden has extended the eviction moratorium until the end of March via executive order, and has also encouraged Congress to further extend it until September as part of the new stimulus bill. States and local governments have also issued their own eviction moratoriums. If you’re evicted for a reason other than failure to pay rent due to the pandemic, or are otherwise struggling to find housing, there are a variety of shelters and housing organizations that can provide temporary housing.
Other aid sources
If you’re struggling because of the pandemic, there are a variety of other local aid sources you should take advantage of it. These include:
- Self Employment Assistance for individuals looking to start their own business after becoming unemployed.
- U.S. Department of Labor employment or training programs.
- Temporary Assistance for Needy Families (TANF) for current or expecting parents.
- SNAP benefits.
- Food banks like Feeding America and No Kid Hungry.
- Special Supplemental Nutrition Program for Women, Infants, and Children.
- The Low Income Home Energy Assistance Program.
- Local 211 COVID-19 resources.
- State resources for housing, food, and legal assistance.
Additional rental assistance on the horizon
According to Moody’s Analytics, Americans behind on rent owe a total of $57 billion in rent, utilities, and late fees. This means that the initial $25 billion designated for rental assistance in December likely won’t be enough.
President Biden has called for $30 billion in rental assistance as part of the latest stimulus package on the table. While this bill hasn’t yet passed, it could provide additional relief for Americans struggling to make rent each month.
Summary
If you’re behind on rent payments and worried about eviction, the latest round of COVID-19 rental assistance can help. If you meet certain eligibility requirements, you may be able to receive funds that cover up to twelve months of rental expenses, plus an additional three months if there are enough funds left over.
If you don’t qualify for rental assistance but are still struggling, there are other resources available to help. President Biden’s proposed economic rescue package could also provide additional assistance for Americans hard-hit by the pandemic.
Read more:
Source: moneyunder30.com
Apache is functioning normally
With the July 4th weekend nearly upon us, it’s time to reflect on all that we have been through in the past year and how, as a country, we have overcome so many daunting obstacles, including what we have been through in the housing market.
The first thing that pops into my shriveled brain is how the housing market looked in February of 2020. Data from that month showed that housing was breaking out — but because we received this data in March of 2020, we were all too busy trying to survive to take notice.
Once the fear of the virus calmed down, we began a truly remarkable economic comeback, perhaps the fastest economic comeback from a significant economic downturn in the history of the U.S., with the housing market leading the way.
But for every silver lining there is a cloud.
The solid demographics for home purchasing and historically low mortgage rates — which have been in a downtrend for four decades — have created a housing market where prices are rising too fast. Even though we have good demographics for housing, we are not seeing a growth in sales that would account for the rate of growth in prices.
Before COVID-19 was even a whisper in our minds, I thought that in the years 2022 and 2023, price pressures for housing could be the big story. But I expected that higher mortgage rates of over 4% would keep prices from escalating out of control.
Instead, demand picked up early and because of the effects of COVID-19 on the world economies, mortgage rates are down to all-time lows. Rates haven’t even gotten to 3.5% recently — forget getting above 4%. These low mortgage rates are being sustained in a climate of some of the best economic growth in the 21st century and hotter-than-normal inflation data.
In this first year of economic expansion, we continue to have a good savings rate and healthy household formation demographics.
I anticipate that by September 2022, we will have all the jobs back that were lost due to COVID-19. When one considers that we currently have the most job openings ever recorded in U.S. history, (9.3 million) this date does not seem to be a stretch. Note, too, that all this good economic mojo is going on before we have even started fiscal spending on infrastructure.
With this recipe of excellent national economics, good demographics for housing, an improving employment picture and low mortgage rates, it makes sense that home prices would be hotter than normal. But as I have said before, the high rates of growth in home prices have been more a function of low housing inventory than extreme credit growth in demand.
But all is not hopeless: There are several reasons why housing inventory should pick up in the next several months and going into 2022.
First, the higher prices we are seeing in the current market are making it difficult for some buyers to compete. Clearly not all buyers, but enough to keep the extreme low housing inventory levels hard to maintain. This is a key point, but because we got to all-time lows in housing inventory, a move higher from these extreme low levels isn’t saying too much.
From the NAR:
Second, forbearance programs and the eviction moratorium will be ending soon. Because loan holders started their forbearance programs at different times they will exit the programs at different times, too, so don’t expect a flood of housing inventory to appear at once. Forbearance programs have gone from near 5 million loans to a tad over 2 million. A lot of primary-residence households on forbearance programs have already exited the program and housing inventory remains chronically low.
Nevertheless we can expect some of these homes to come on to the market. These homes might be mom and pop landlords who were unable to collect rent during COVID-19 and want out of the rental game or some investors looking to cash in on high home prices. In any case, to think that we would have zero housing inventory created from this crisis is highly unlikely.
Third, while demand is solid in 2021, and we should have slightly more total home sales than we had in 2020, we are not seeing growth in credit (number of mortgages taken out). To think that we would have double-digit price growth with essentially slight home sales growth is the essence of bad inflation. As you can see below, what we experienced from 2018 to 2021 looks nothing like the credit growth we saw from 2002-2005.
We got to all-time lows in housing inventory recently so any increase is going to be a high percentage increase and that is going to fool some folks that the housing inventory picture has changed dramatically. The actual number of homes making up that increase is not going to be much, however, so don’t look at it like that. Instead look to see if total housing inventory gets back to the levels we saw in early 2020.
Getting back to 2020 levels with days on market going past the teens is the No. 1 priority for the housing market. We need more than the typical rise due to seasonality that happens every spring. We want total inventory levels to go above 1,520,000 at minimum.
In 2018-2019, total housing inventory was in the range between 1,520,000 – 1,920,000 and that level of inventory helped to drive real home-price growth in 2019 into negative territory briefly. Existing home sales during those years stayed in the monthly sale range of 4,980,000 to 5,610,000 homes. More importantly, the days on market were higher than what we see today — and as such we had fewer bidding wars and less price growth.
The effect of higher mortgage rates, which in late 2018 got to 5%, also contributed to more stability in housing prices. 2018 and 2019 were more balanced markets, so in my view it was a healthier housing market compared to what we have today.
Once the 10-year yield gets above 1.94%, which should bring mortgage rates above 3.75%, then things should cool down enough to stabilize the unhealthy price gains we are currently experiencing. The 10-year at 1.94% is not a very high bar, but even so, that is higher than what I have forecasted for 2021.
If housing demand is better than I thought going into the demographic sweet spot years of 2022 and 2023, then housing inventory may not improve much. I still believe in my replacement buyer premise rather than a credit boom housing market. However, if I am wrong, then we will see it for sure in years 2022 and 2023. The price gains in 2020 and 2021 have already met the target that I anticipated to be cumulative for the five-year period of 2020 to 2024. This pathway explains my concern over what has happened recently.
During the years 2020 to 2024, I anticipated total sales (new and existing homes combined) to stay at 6.2 million or higher. The only way I saw this not happening was if home prices got out of hand early on, and guess what, that has happened. While we won’t break lower than 6.2 million in 2021, I am mindful of these recent price gains in both exiting and the new home sales market. Demand for existing homes will come from first-time homebuyers, cash buyers, investors, move-up and move-down buyers. The bump in demographics in the years 2020-2024 has already showed itself to be a powerful economic force for the United States of America.
All these buyer types will create steady replacement demand for the existing home market. The new home sales market, on the other hand, is driven by wealthier older buyers with mortgages. For this reason, new home sales are more dependent on mortgage rates. I recently expressed some concern in this market here.
More than anything, I am hoping that what happened in 2013-2014 and 2018-2019 happens again. During those periods, interest rates went up, which increased housing inventory and days on the market. The additional supply cooled the rate of growth of home prices and stopped the bidding wars. Unless we get an increase in housing inventory from softening demand or end-of-forbearance selling, only an interest rate increase will get us above 1,520,000 total housing inventory and out of the low housing inventory/high price quagmire we have been in since the summer of 2020, which has been most unhealthy housing market post-2008. Still, these are first world problems. I mean, come on, it’s not like we are having a bubble crash like some bros wanted to see.
Source: housingwire.com
Apache is functioning normally
The global COVID-19 pandemic is changing life as we know it, and nearly every industry has been forced to adapt in one way or another. The rental industry is no exception – the industry as a whole has discovered new ways to meet safety guidelines while continuing to provide essential housing services to renters across the nation.
Widespread layoffs and economic turmoil has resulted in many Americans struggling to keep up with cost-of living expenses. According to the U.S Department of Labor, the national unemployment rate is at almost 8 percent, with more than 12.5 million Americans currently unemployed. Even with federal stimulus checks and other benefits, a majority of qualifying recipients used the money to catch up on overdue bills.
Rent is often the most expensive cost-of-living expense, with one in four renters in the United States spending more than 50% of their income on housing. As a response to a climbing unemployment rate, several states across the nation have implemented an eviction moratorium to protect renters who are struggling to pay rent. Unfortunately, landlords still need to make an income in order to see a profit on their investment. The good news is that the majority of renters are still making full or partial rent payments on time. However, data from September 2020 indicates that renters are more financially burdened now than at the onset of the pandemic.
Rental payments decline as the pandemic continues
We pulled aggregated anonymous data from our Rentec Direct property management software platform, representing 620,000 rental properties nationwide. Using January and February as a baseline and considering March to be the official onset of the pandemic (when most state shutdown orders occured), our data showed that the number of rent payments received by property managers and landlords has been steadily declining over the past several months. As of September 10th, rent payments received nationwide were 35 percent lower than rent received for the same period in March, prior to the onset of the pandemic in the United States. This is the biggest drop we’ve seen in rental payments received by landlords so far, following a 29 percent drop in August.
These numbers indicate that renters are struggling financially right now more so than when the pandemic first hit the U.S. It is not necessarily surprising when you consider the fact that 16 percent of Americans have no emergency savings. The pandemic is worsening the financial hardship for many when it comes to elevated unemployment, reduced income and increased debt.
Online rental payments see little change
Interestingly, but not surprisingly, electronic rent payments in September saw a 1 percent increase compared to electronic rent payments received prior to the pandemic. When compared to the 35 percent decrease in total rent payments received, it is clear that online rent payment options increase the likelihood of on-time rent payment.
Not only are electronic payment options becoming increasingly critical for property management businesses in order to meet social distancing measures, but electronic methods also give renters the option to set up reliable automatic payments. According to a 2018 study, only 33 percent of renters who scheduled recurring monthly rent payments were charged a late fee, compared to the 47 percent of renters who were charged a late fee making manual rent payments. Of renters with no online payment options, 57 percent were charged a late rent fee.
Moving forward
It’s a true challenge to predict the future during these unprecedented times, but the continued rise of national COVID-19 cases certainly poses a threat to America’s economic future. Despite the unemployment rate decreasing slightly in recent months, this is still the highest unemployment rate our nation has seen since the Great Depression. Several states are implementing re-closures, layoffs are continuing, and federal benefits are expiring. All of these changes will absolutely impact renters across the country, potentially burdening their financial situation further.
The coming months will help us further understand the impact of the pandemic and reveal how renters will handle their cost-of-living expenses. My advice for landlords and property managers is to strongly consider implementing online rent payment options, if you haven’t already. Not only is it safer given the current social distancing mandates, but it is likely to save you money in the long run.
Source: geekestateblog.com
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Eviction filings have risen more than 50% in some cities when compared to pre-pandemic levels, as expiring relief measures and economic volatility play havoc with the finances of renters in certain parts of the country.
This is according to data from the Eviction Lab at Princeton University, as reported by the Associated Press.
“Protections have ended, the federal moratorium is obviously over, and emergency rental assistance money has dried up in most places,” Daniel Grubbs-Donovan, research specialist at the Eviction Lab told the AP. “Across the country, low-income renters are in an even worse situation than before the pandemic due to things like massive increases in rent during the pandemic, inflation and other pandemic-era related financial difficulties.”
Eviction Lab tracks data in roughly 36 cities and 10 states, finding that eviction filings are more than 50% higher in certain areas. Landlords file about 3.6 million eviction cases each year, according to the organization.
Among the cities with the highest rates, Houston came in the highest. Evictions there were 56% higher in April and 50% higher in May, according to the data. In Minneapolis/St. Paul, rates were 106% higher in March, 55% higher in April and 63% higher in May. Nashville was 35% and Phoenix was 33% higher in May, while Rhode Island was 32% higher in May.
“The latest data mirrors trends that started last year, with the Eviction Lab finding nearly 970,000 evictions filed in locations it tracks — a 78.6% increase compared to 2021, when much of the country was following an eviction moratorium,” the Ap report said. “By December, eviction filings were nearly back to pre-pandemic levels.”
Rent prices have also steadily increased, being roughly 5% higher in 2023 over last year, and over 30% higher in 2023 when compared to 2019 according to data from Zillow as shared in the report.
As federal relief programs from the pandemic are increasingly expiring or becoming phased out, calls for additional resources from Congress have failed to gain any significant momentum, particularly as concerns over spending dominate the legislative agenda of the U.S. House of Representatives.
The expiration of eviction moratoria is also leading to higher rates of eviction. But similarly to a lack of will seen in the U.S. Congress, a number of state legislatures have not seen any meaningful legislation emerge to combat the trend, despite organized efforts in states like New York and Texas.
However, several pandemic housing relief measures have been made permanent.
Nationwide, 200 measures have passed since January 2021, including legal representation for tenants, sealing eviction records and mediation to resolve cases before they reach court, according to the National Low Income Housing Coalition.
Source: housingwire.com
Apache is functioning normally
The National Association of Realtors is calling for landlords to receive emergency rental assistance to help them cover their costs during the coronavirus pandemic.
The call comes after the Centers for Disease Control and Prevention called on a 1944 public health law that was created to help prevent the spread of dangerous illnesses, to justify an extension of an eviction moratorium until the end of the year.
The White House’s announcement that tenants cannot be evicted this year will assist many struggling renters, but at the same time it does nothing to help landlords who must still make payments and obligations on the properties they own, the NAR said.
“While NAR appreciates and is supportive of administrative efforts to ensure struggling Americans can remain in their homes, this order as written will bring chaos to our nation’s critical rental housing sector and put countless property owners out of business,” Vince Malta, NAR’s president, said in a statement. “Any eviction moratorium must also come with rental assistance for property owners, the vast majority of which are mom-and-pop investors and are still required to meet their financial obligations even as they cease to receive income on their properties.”
The new eviction moratorium runs through December 31, and applies to all renters who earn less than $99,000 a year. Renters must also certify that they’re unable to pay their rent due to the coronavirus pandemic, and those who’ve received protection will need to make up for their missed payments once the moratorium expires.
Earlier eviction moratoriums only applied to homebuyers who purchased their homes with federally backed mortgages from Fannie Mae and Freddie Mac. But the new law applies to all rental units in the country, White House officials said.
“An untailored eviction moratorium will bring more havoc to our economy, not less, and will put America’s 43 million renter households at significant risk,” Malta warned.
The NAR has urged Congress to pass new legislation that will provide emergency rental assistance programs to housing providers.
Source: realtybiznews.com
Apache is functioning normally
There’s a growing divide in real estate, with some home shoppers fortunate enough to be able to buy newer and bigger homes, while others who have experienced job losses face losing their current home.
The U.S. unemployment rate grew to 8.4% in August, and many Americans have been left struggling to pay their mortgages or monthly rent. Lawrence Yun, chief economist of the National Association of Realtors, says another 10 million jobs must be created to get the U.S. economy back to where it was before the coronavirus pandemic.
Moreover, a survey by the Census Bureau recently revealed that 42% of renters who earn less than $35,000 per year say they have only slight, or no confidence in their ability to pay September’s rent.
“The level of economic suffering for families is heartbreaking if we don’t figure out how to help unemployed Americans pay rent,” Sam Gilman, co-founder of the COVID-19 Eviction Defense Project, told USA Today. “Eviction leads to horrible consequences for families. It can lead to homelessness, kids not going to school, and is linked to deaths of despair.”
Gilman estimated that up to 40 million Americans are at risk of being evicted at the end of the year if nothing is done. He said that eviction and foreclosure moratoriums that extend to the end of the year could well be postponing the inevitable.
“We are only delaying this huge build-up in rental debt and the precursor to eviction,” Gilman said. “Once rent comes due after the holidays, the circumstances for millions of Americans likely will not have changed.”
The most recent eviction moratorium came into effect on Friday, and requires tenants to certify or testify under penalty of perjury that they’re doing everything that they can to pay. Some of the obstacles that preclude them from paying the rent include job losses or wage reductions, and medical expenses.
Meanwhile, as millions of renters worry about losing their homes, there are millions of buyers at the other end of the spectrum with secure, well paying jobs that are flooding the market. Indeed, the housing market has emerged as one of the main drivers of economic recovery, with 27,700 jobs added to the construction industry in recent months. In addition, the NAR has seen record levels of membership, Yun said.
Those with high-paying jobs are looking to take advantage of record low mortgage rates, and many are looking to upsize during the pandemic.
“There’s a fortunate group of Americans with a steady paycheck that didn’t go on a big vacation, but did end up buying new furniture, appliances, or are renovating,” Ted Rossman, an industry analyst at Bankrate, told USA Today.
Citing a recent survey, Bankrate said around 59% of homeowners in the U.S. have completed at least $500 worth of home upgrades this year, or are planning to do so before the end of the year.
Others, instead of sprucing up their existing home, or aiming for something new and bigger. With that, home prices have rapidly escalated as demand increases. Now, the median national price for an existing home has hit $304,100, the first time it’s ever surpassed $300,000, the NAR said.
The market well and truly belongs to sellers at present, Rossman told USA Today.
“There’s still a lot of interest in sellers getting top dollar for their homes and buyers getting more space. The work-from-home trend has legs even beyond the pandemic because many companies have found that workers can be productive from home and it saves them money on office space. That has big ripple effects for the housing market if work-from-home becomes more permanent,” Rossman said.
Source: realtybiznews.com
Apache is functioning normally
What happens when mortgage forbearance ends? On today’s State of the Market podcast, Auction.com’s Daren Blomquist joins us to discuss the possibility of a massive wave of foreclosures hitting the market. We talk about current property prices, dive into detailed foreclosure stats, and more. Tune in and get information on everything you need to know as a Realtor, investor, or prospective homebuyer.
Listen to today’s show and learn:
- The shadow inventory of foreclosures [4:41]
- Daren’s thoughts on what will happen to properties in forbearance [8:21]
- The average equity loss for properties in forbearance [11:23]
- Foreclosures in Texas [14:37]
- Bubble or boom? Daren’s thoughts on housing prices [19:48]
- Why the first-time-homebuyer tax credit is the wrong solution [24:29]
- The eviction moratorium’s impact on landlords [26:37]
- Daren’s foreclosure stats [34:22]
- The average price of foreclosure sales compared to total debt [40:47]
- Where to find more of Daren’s foreclosure research [42:16]
Daren Blomquist
Daren Blomquist is Auction.com’s new Vice President, Market Economist. Recently, Daren served as Vice President at Attom Data Solutions where he was widely recognized as an authority in the housing and mortgage industries. In his new role, Daren focuses on analyzing and forecasting complex macro and microeconomic data trends within the marketplace and greater industry.
Daren mines real estate data for key insights and trends to help businesses and consumers make better decisions. Prior to Auction.com, Blomquist directed ATTOM Media, a division of ATTOM Data Solutions, which publishes original real estate reports and analysis.
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Source: hibandigital.com