Limited Inventory, Demand continues gaining momentum, Interest rates at a History Low, Plus incentives such as down-payment assistance programs for buyer are offering great opportunities to those looking to buy and sell! . . . If you are paying more than $2,500 in rent, you can afford a mortgage. Send me a message and let’s have a conversation on how to take advantage of the opportunities now available…
There were 14,148 U.S. properties with foreclosure filings in April 2020, down 70 percent from March 2020 and down 75 percent from a year ago. Nationally, one in every 9,639 U.S. properties received a foreclosure filing during the month of April.
Not surprisingly, due to recent federal legislation ordering a two-month moratorium on foreclosures by lenders holding federally backed mortgages, this is the lowest number of foreclosure filings ATTOM has ever recorded nationwide since it began tracking the data in April 2005.
“Foreclosure cases dropped dramatically last month following the foreclosure moratorium imposed on lenders holding federally backed mortgages,” said Todd Teta, chief product officer with ATTOM Data Solutions. “It’s hard to know how much this reflects the virus pandemic because the data doesn’t say whether these were cases caused by very recent job losses or were already filed before that. What can be said is that the drop-off will almost certainly be temporary. And when it’s lifted, we should be able to more clearly measure how deeply the pandemic fallout is affecting homeowners. ATTOM is monitoring this closely with monthly, quarterly and annual updates.”
Foreclosure starts drop below ten thousand nationwide
Lenders started the foreclosure process for the first time on 8,552 property owners in April 2020, down 69 percent from the previous month and down 72 percent from a year ago.
States that saw the sharp declines year-over-year in foreclosure starts, included Georgia (down 85 percent); North Carolina (down 84 percent); Florida (down 83 percent); Michigan (down 82 percent); and Colorado (down 81 percent).
In a more granular look that runs counter to the national trend, there were some counties that experienced an increase in foreclosure starts in April 2020. Those counties with an annual increase, included Marin County, California (up 76 percent); Monterey County, California (up 42 percent); Mesa County, Colorado (up 40 percent); Solano County, California (up 36 percent); and Hillsborough County, Florida (up 18 percent).
Delaware, Maryland, and Illinois post worst foreclosure rates
States with the worst foreclosure rates in April 2020 were Delaware (one in every 2,745 housing units); Maryland (one in every 3,809 housing units); Illinois (one in every 5,353 housing units); Connecticut (one in every 5,519 housing units); and Florida (one in every 6,171 housing units).
Among 220 metropolitan statistical areas with at least 200,000 people, those with the worst foreclosure rates in April were not your usual metro areas. In fact, California metro areas made up 3 of the top 5 metro areas. With Vallejo-Fairfield, California (one in every 1,105 housing units); Peoria, Illinois (one in every 1,173 housing units); Reading, Pennsylvania (one in every 1,813 housing units); Santa Rosa, California (one in every 2,016 housing units); and Salinas, California (one in every 2,434 housing units);
Among 53 metro areas with at least 1 million people, those with the highest foreclosure rates in April were Tampa, Florida (one in every 2,818 housing units); Baltimore, Maryland (one in every 3,025 housing units); New Orleans, Louisiana (one in every 3,457 housing units); San Antonio, Texas (one in every 3,519 housing units); and Louisville, Kentucky (one in every 3,746 housing units).
Bank repossessions drop 76 percent from last year
Lenders repossessed 2,641 U.S. properties in April 2020 (REO), down 71 percent from the previous month and down 76 percent from a year ago, to the lowest levels ever.
States that saw the greatest actual number of completed foreclosures but are still down from last year, included Florida (387 REOs, but down 72 percent from last year); Illinois (255 REOs, but down 65 percent from last year); California (199 REOs, but down 72 percent from last year); Georgia (194 REOs, but down 48 percent from last year); and Texas (190 REOs, but down 75 percent from last year).
Those metropolitan areas with a population greater than 1 million that saw an annual decrease included Los Angeles, California (down 80 percent); Chicago, Illinois (down 67 percent); New York, New York (down 77 percent); Tampa, Florida (down 71 percent); and Philadelphia, Pennsylvania (down 94 percent).
There are so many ways in which 2020 is not turning out the way most Americans expected. In terms of real estate, we were hurtling toward a busy spring season. All the economic indicators looked strong, boosting buyers to battle it out for a limited supply of homes. But then the coronavirus pandemic swept across the nation, upending those expectations and forcing us to reassess the year ahead.
Home sales have fallen and real estate listings dissipated as the COVID-19 pandemic made many buyers and sellers think twice about buying, selling, and potentially even moving with a deadly and highly contagious virus on the loose. But home sales will rebound in the late summer and fall, driven by millennials eager to own a home of their own, according to a revised forecast for 2020 by realtor.com®’s economists.
Markets in smaller, more affordable cities and surrounding suburbs could be particularly brisk as folks reevaluate the appeal of big-city life during a pandemic. But realtor.com also predicts the housing market will experience a second round of pain in the form of another downturn toward the end of the year.
“COVID-19 has really dramatically changed the way the housing market is going to perform this year,” says realtor.com Chief Economist Danielle Hale. “We started off with the potential for the best year in more than a decade for sales. But we’re going to see ups and downs as the market grapples with an unsteady economy. This will affect buyers and sellers across the board.”
Sales of existing homes are expected to drop about 15% in 2020 compared with the previous year. Realtor.com is anticipating 4.5 million sales this year, compared with 5.34 million last year. The company’s economic team had originally forecast, late last year, that 5.25 million sales would take place in 2020.
While many cash-strapped buyers have eagerly anticipated prices falling, triggering a real estate bonanza similar to the Great Recession, that’s not likely to happen this time around. That’s because the number of homes on the market has fallen, by about 45% in April, and so has demand from buyers. There’s no glut of for-sale homes driving prices down.
“Sellers don’t like to reduce their prices. So they decide not to sell,” says Hale. Instead, they just pull their homes off the market.
The median price for an existing home is expected to hold steady, rising by just 1.1% in 2020 over the previous year.
“Were it not for COVID-19, we probably would’ve seen prices rise in the 2% to 4% range,” says Hale. That’s because even before the pandemic, available housing fell well short of demand, pushing prices up.
Buyers shouldn’t despair. Record-low mortgage interest rates will offset some of the slightly higher prices. Rates are expected to be around 3.2% this year, down from nearly 4% last year. And they could even fall into the 2% range later in 2020, amid further financial uncertainty.
The problem is, buyers may have a harder time snagging those low mortgage rates. Lenders are requiring higher credit scores and down payments, in some cases, as the nation grapples with unemployment rates that are likely in the 20%-plus range.
Another downside for buyers is that home construction is expected to slow, exacerbating the housing shortage. Housing starts, or the number of homes on which construction has begun, are expected to drop by 11% this year. Before the pandemic stalled construction sites in certain states, realtor.com had expected starts to jump by 10% in 2020.
Where buyers go shopping could also shift in the wake of the coronavirus. Those cooped up in small apartments in pricey cities may seek out smaller cities and suburbs where they can get more square footage and a backyard for less money. And with unemployment as bad as it’s been since the Great Depression, buyers may also seek out these areas for their lower prices.
“The experience of being at home for a long period of time has everyone rethinking their priorities,” says Hale. “People are recognizing space is more important, so they’re looking for more affordable areas where they can have more space at the same price.”
Definition: A Non-Institutional Lender, sometimes referred to as a “hard money” lender (“NIL”) is defined as: ANY party acting as a lender, except (a) any bank, savings and loan association, savings institution, credit union, trust company or national banking association, acting for its own account or in a fiduciary capacity, (b) any insurance company, pension and/or annuity company, (c) any government, public employees’ pension or retirement system or any other government agency supervising the investment of public funds, or (d) a seller acting as lender (sometimes referred to as a “carryback lender”). The criteria for an institutional lender is as follows; If a lender holds a CFL or CRMLA license, it is “institutional”. If anything other than the 2, they are considered NIL. It is best to check the lender’s name on the California Department of Business Oversight’s website https://dbo.ca.gov as a first step to check licensing status.
El programa es una serie web interactiva de 10 lecciones de baile sin la necesidad de un compañero
El baile es una de las actividades más sociales que existen, pero en esta época de distanciamiento por el Covid-19, una organización de Los Ángeles ha preparado unas lecciones de baile en línea para niños y jóvenes que se pueden realizar sin necesidad de tener una pareja.
Conga Kids, una organización sin fines de lucro que fomenta el bienestar social y emocional a través del baile en pareja en las escuelas del Condado de Los Ángeles, ha modificado su programa para apoyar a los estudiantes que tienen que quedarse en casa.
Durante el resto del año escolar, Conga Kids impartirá el programa Social Dance for Social Distancing (“Baile Social para el Distanciamiento Social”), lecciones en línea que no sólo serán para los 10,000 estudiantes de quinto y sexto grado en más de 100 escuelas en 12 distritos escolares en todo el Condado de L.A., sino también para los jóvenes de todo el país.
“Respondimos rápidamente a la crisis del Covid-19 creando contenido ‘dentro de casa’, literalmente en las salas y los patios traseros de nuestros artistas docentes, para difundirlo en los distritos escolares y así llegar a una población más amplia de niños, padres y educadores”, expresó Brad Gluckstein, Fundador y Presidente de Conga Kids.
Como su enfoque principal, Conga Kids enseña cinco bailes de pareja: Salsa, Merengue, Swing, Tango y Foxtrot como parte del currículo escolar. Este nuevo programa es una serie web interactiva de 10 lecciones de baile sin la necesidad de un compañero de baile. El plan de estudios en línea será modificado para incluir ritmos africanos, Hip Hop, Cha Cha Cha y otros bailes divertidos y activos. Las lecciones incluirán datos históricos, así como músicos y actuaciones en vivo.
Disponible a partir del martes 21 de abril para los estudiantes actuales de Conga Kids, las lecciones en línea de 40 minutos incluirán diversos tutoriales de baile de gran energía, actividades basadas culturalmente y emocionalmente en las artes, lecciones breves sobre historia, geografía, música y más. Para proporcionar igualdad de acceso en el sur de California y en todo el país a quienes no han participado antes en el programa, Conga Kids presentará contenido gratis en su página de YouTube durante todo el mes de mayo.
Viendo hacia el próximo año escolar 2020-2021, Conga Kids también desarrollará e implementará un plan de estudios alternativo de baile «sin contacto» y ya cuenta con el compromiso de muchos distritos escolares. A través de técnicas progresivas, Conga Kids transformará la magia de su programa de baile en pareja en un formato nuevo y emocionante, mientras proporcionará acceso equitativo al arte del baile. EC
Yes, it’s possible to sell your home safely right now, 100% virtually. 1 in 4 home purchases was done sight unseen in April because buyers are still looking and are comfortable buying if you’ve got the right technology and smart marketing available. If you are ready to sell today, I can help. Message me if you have any questions on how to get started!
Varios sitios en California ofrecen comidas gratis debido al cierre de escuelas, para que los estudiantes tengan acceso a alimentos nutritivos
Un gran número de familias en California dependen de las escuelas a las que asisten sus hijos para que estos reciban al menos un alimento completo, pero con las escuelas cerradas a causa del coronavirus, este beneficio también ha sido suspendido.
Afortunadamente, hay sitios escolares con comidas gratuitas para niños en todo el estado. El Consejo de Productos Lácteos de California, en colaboración con la Junta de Procesadores de Leche de California y el Senador Estatal de California Dr. Richard Pan, creó un sitio web donde las familias pueden encontrar una lista de lugares con comidas gratuitas disponibles, proporcionadas a través del servicio de comidas escolares.
“Durante estos tiempos difíciles, millones de niños y sus familias que viven en comunidades de California necesitarán apoyo y acceso a alimentos nutritivos”, comentó Shannan Young, Directora del Programa de Acceso a Alimentos de Dairy Council of California.
La página informativa Sitios de Comidas Escolares que Ofrecen Comidas Gratis para Niños en Todo California, está destinada a servir como un recurso de referencia para encontrar ubicaciones actualizadas de servicios de alimentos en todo California. Considerado un servicio esencial, los servicios de nutrición escolar permanecerán abiertos incluso con órdenes de no salir y permanecer en casa.
“Los niños son el corazón de las familias y nuestra población más vulnerable”, dijo Steve James, Director Ejecutivo de la Junta de Procesadores de Leche de California. “Al transmitir la información sobre la disponibilidad de comidas escolares gratuitas y nutritivas en todo California, podemos mitigar la incertidumbre que las familias pueden sentir y ayudar a garantizar que ningún niño se quede sin ser alimentado”.
“Asegurar que todos los niños tengan acceso a comida es una alta prioridad”, expresó el Dr. Richard Pan, Senador del Estado representando el área de Sacramento. “Ningún niño debe de irse a dormir con hambre. A través de la colaboración con socios comprometidos con mejorar la salud de los niños y las comunidades de California, podemos trabajar para dar a los niños acceso a alimentos nutritivos durante este tiempo desafiante”. EC
Every day that passes, people have a need to buy and sell homes. That doesn’t stop during the current pandemic. If you’ve had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home – and fast. While you probably feel like timing with the current pandemic isn’t on your side, making a move is still possible. Rest assured, with technology at your side and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the current COVID-19 guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).
You may have a new baby, a new employment situation, a parent who moved in with you, you just built a home that’s finally ready to move into, or some other major part of your life that has changed in recent weeks. Buyers have those needs too, so rest assured that someone is likely looking for a home just like yours.
According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there’s a noticeable decline in current homebuyer interest. That said, 10% of agents said in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don’t forget, you only need one buyer – the right one for your home.
Here’s the other thing – people are spending a lot of time on the Internet right now, given the stay-at-home orders implemented across the country. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too. Homes are being sold in many markets.
There Is Less Competition Right Now
The same survey indicates that 56% of NAR members said sellers are removing their homes from the market right now. This can definitely work in your favor. If other sellers are removing their listings, your home has a better chance of rising to the top of a buyer’s search list and being seen. Keep in mind, listings will pick up again soon, as 57% of the respondents note that sellers are only planning to delay the process by a couple of months. If you need to sell right now, don’t wait for the competition to get back into the market again.
This year, delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.
Your Trusted Real Estate Advisor Can Help
Real estate agents are working hard every single day under untraditional circumstances, utilizing technology to help both buyers and sellers who need to continue with their plans. We’re using virtual tours to show homes currently on the market, staying connected with the buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We’re making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.
Bottom Line
Homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in your local market, contact a local real estate professional to create a safe and effective plan that works for you and your family.
ORANGE COUNTY TRENDS 