Hello investors! You’re reading the Rent to Retirement Monday Weekly Real Estate Market Recap. This post will be recapping 07/19/21 to 07/23/21.
Today we’re going to be recapping COVID19, the end of the Federal Eviction Moratorium, and the current state of play in the U.S. housing market.
The Delta Variant of COVID-19 is spreading throughout the United States. Investors have shown hesitancy to declare victory over COVID-19. Shares in hospitality companies have traded lower this week. Home oriented companies such as Wal-Mart and Peloton have traded higher.
Canada is set to open its border to fully-vaccinated U.S. travelers on 08/09/21. Will this further affect the hospitality industry’s recovery? More US residents may choose to travel outside of the US instead of domestically. Will this aid in the recovery of the hospitality industry? We’ll have to wait to find out.
THE END OF THE FEDERAL EVICTION MORATORIUM
The Federal Eviction Moratorium ends on 07/31/21. With this, any Americans will soon be without housing if they don’t have the money to pay for it. Mass eviction can lead to a temporary loss of income for landlords. In turn, this could cause them to default on their mortgages. This would lead to foreclosures or a sell-off of investment properties. Will this affect prices? We’re not so sure. The market is still very strapped for inventory. So, it’s still to be seen if the amount of investment property sales may cause a price dip.
RECAPPING THE HOUSING MARKET
With record low interest rates and high demand, the US median sale price hit a record high. The median sale price was $363,300 last month. This is up 22.9% from 2020, However, the median home prices are a lag measure. It is because it takes a month or so for home transactions to actually close. With rates staying low and inventory still lacking, prices show no sign of dipping too drastically.
Unemployment Rate: 5.9%
GDP Growth Rate: 6.4% last quarter
Average Interest Rates for Primary Residences: 2.85% – per NerdWallet
Average Days on Market: 37 days
Median List Price: $385,000
Renter vs Owner Ratio: Owner Occupied Housing Units were 58.3%
Renter-occupied housing units were 30.6%
11% of housing units were unoccupied
These percentages are from the first quarter of 2021
Average Rent Price: $2,012/mo for a three bedroom rental – per Apartments.com
NEW INVESTMENT OPPORTUNITIES
Check out our investment property Hotlist (sign up in the top right corner of the webpage) this week. Also take a look at our current inventory on our Inventory Section of our website. It lists all of the markets in which we operate in the US. We have thoroughly researched and identified them as great areas for appreciation and cash flow.
KEEP COMING BACK
Thanks for reading The Monday Weekly Real Estate Market Recap. We hope that us recapping the market gives you a little better handle on this crazy market and economy. Our goal is to help you become a more informed investor. This will lead you to smarter investment decisions everyday.