In this 10 minute video, Amber Kovarik and I discuss the latest in real estate and lending.
Real Estate Headlines:
Many of you may read Inman News and last week they ran a series entitled “Bubble Trouble.” While the headlines are to get our attention, the articles really aren’t about the market crashing. If anyone wants to see any of them, let me know and I will send you the info. Don’t let the headlines scare you or your clients. The market is starting to get more normal, it is not crashing. Demand continues to exceed supply. Here in Phoenix, in March we had 10 buyers for each listing, today we have 5 buyers for each listing, prices are still going up. The decline in demand is allowing some buyers to actually get a contract accepted, which is good. While houses are selling quickly, buyers are educated, now is not the time to push the market. Overpriced listings are sitting and we are seeing more price reductions. This is healthy and good. The roughly 24% year over year appreciation is way too much and unsustainable.
In economics, it all comes down to supply and demand. In real estate, it is about supply, demand, and equity. In 2005 we had a lack of supply, high demand, and no equity. Today, we have even lower inventory, solid demand, and tons of equity. Supply has started increasing slowly, but we are still about 77% below normal. Demand remains nearly 8% above normal.
Eviction Ban Lifted? Nope.
On Wednesday a federal judge lifted that the CDC’s eviction ban, which is set to expire on June 30, after a 7-month lawsuit filed by the Alabama and Georgia Association of Realtors. Within hours the DOJ filed an emergency appeal on the case and issued a stay effectively prohibiting any evictions until the appeals process is over. Legal housing experts are recommending against any evictions prior to June 30th. FTC and CFPB issued a statement to landlords stating they would be held accountable for moving forward with any evictions.
Too Interesting Not to Share:
Loans that originated from 2005-2008 make up only 2% of existing loans but those loans make up 5x the seriously delinquent rate when compared to loans that originated since 2009. Those loans are still haunting us!
Lending:
Interest rates increased quickly earlier this year and then came back down quickly. They remain right around 3%.
Sarah Perkins is an award winning account executive and has been in title sales since 2004. As the Director of Industry Research & Senior Account Executive, Sarah’s role is to bring real estate transactions to Navi Title. Sarah supports her clients by helping them navigate the ever-changing real estate space through thorough research and understanding of current trends impacting today’s home buyers and sellers.