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The pandemic is giving many of us “shakephobia.” Shaking hands is a common way to express good will and is often used during the closing of a business deal. It’s also a great way to spread germs, and maybe not a wise thing to do as the coronavirus spreads. I thought I’d dedicate this podcast to ways you can avoid a handshake without offending the person you are greeting.   The handshake has been around for a long time. The message a handshake delivers is one of trust, respect, equality, and, in business, agreement.   www.NewsForInvestors.com  

It’s headline news for residential real estate. The National Association of Realtors is reporting a mammoth 44.3% increase in pending home sales for the month of May. That’s after a decline during the previous two months when the pandemic was at its peak. Economists see this as a sign of a “V-shaped” recovery that could help lead the economy out of the current recession.   The market for existing homes was pretty much at a standstill for two months. Sellers didn’t want to list their homes out of fear of the selling process -- that buyers touring homes would bring germs. Stay-at-home orders also kept the number of buyers to a minimum, especially those who wanted to see a home in person before they signed on the dotted line.    www.NewsForInvestors.com    

In this Real Estate News Brief for the week ending June 25th, 2020... new home sales are surging, real estate investors are feeling optimistic, and a home buyer priority that can make or break a sale.   We begin with economic news from this past week, and some promising signs for the housing market. The government reported a big surge in the sale of new homes in May. They were up a seasonally-adjusted annual rate of 16.6%. In May of last year, they were up 12.7%. The Northeast experienced the biggest increase. Sales were up 45.5% in that region. The national median sales price for a new home is $317,900.   www.NewsForInvestors.com  

Efforts to eliminate signs of racism have swept across the country. From the toppling of confederate statues to the retiring of the Aunt Jemima image by Quaker Oats, individuals and businesses are getting rid of racist symbols. The word “master” is something that’s used in the real estate world to describe the main bedroom in a house. In one city, realtors have decided to replace that word on the MLS because it “can” invoke thoughts of slavery.   The Houston Association of Realtors stopped using the words “master bedroom” and “master bathroom” on June 15th. Instead, the association is describing those rooms as “primary bedroom” and “primary bathroom.”

If you’re in the market for a single-family home, chances are you’ll have competition this summer. Searches for single-family homes have surged as many more people clamor after the privacy of a home with a yard in the midst of this pandemic. A Redfin report says interest in single-family homes hit a four-year high last month. Tampa is at the top of the list for an increase in single-family web searches, probably due to things like Florida’s great weather, low home prices, low taxes, and a friendly business environment.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending June 20th, 2020… competition heats up among home buyers, mortgage rates hit a new low, and what tenants are doing to manage their finances.   We begin with economic news from this past week, and testimony from Fed Chief Jerome Powell on the state of the economy. He told members of Congress that some economic data points to a “modest rebound” right now, but he also warned of significant uncertainty about how the recovery may take place. The nation is still at the mercy of COVID-19 as cases rise in some states and new safety measures are put in place. Several states and cities have ordered that masks are worn in public, including California.   www.NewsForInvestors.com  

There are big changes to the Paycheck Protection Program that benefit independent contractors and sole proprietors. The changes include more lenient requirements for how you spend the money, an easier process for loan forgiveness, and a longer period of forbearance. But the deadline to sign up is approaching at the end of the month, so if you haven’t applied yet, the clock is ticking.   The deadline to sign up for the Paycheck Protection Program is currently June 30th. That didn’t change in the latest update. The changes were authorized in legislation called “The Paycheck Protection Flexibility Act of 2020, which was sent to President Trump’s desk for final approval on Friday, June 5th.   www.NewsForInvestors.com  

The Fed has launched a new lending program to help struggling companies and get people back to work. The Main Street Lending program was announced in March to help small to medium businesses that were doing well before the pandemic, and it’s rolling out now at local banks. The loans are not forgivable like those in the Paycheck Protection Program but the terms are generous, and they do fill a lending void for businesses that were too big to qualify for the PPP program.   The Federal Reserve Bank of Boston is administering the $600 billion program, but loans are provided through local banks that have registered to participate...   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending June 13th, 2020… the Fed’s plan for the economy, why small businesses are optimistic, and a sudden surge in short-term rental reservations.   We begin with economic news from this past week and word from the Fed that the federal funds rate will probably stay right where it is, at zero, for the next couple of years. Fed Chief Jerome Powell said in a news conference after the mid-year meeting: “We’re not even thinking about raising rates.” He didn’t mention negative rates either which is something that other countries have done. Powell also said the Federal Reserve would use a “full range of tools” to support the economy. That includes the buying of Treasuries and mortgage-backed securities to provide lending liquidity to the market. The Fed’s current balance sheet is about $7 trillion dollars.   www.NewsForInvestors.com  

The killing of George Floyd by a Minneapolis police officer unleashed anger across the country over the mistreatment of Blacks throughout American history. Inequality can manifest in many ways and in many parts of our culture, despite laws that outlaw discrimination. Our housing and financial markets are no exception. Although the practice of redlining was banned more than 50 years ago, Redfin says that Black families continue to feel the impact.   Redlining came into being in the 1930s. The Home Owners’ Loan Corporation rated neighborhoods on their overall likelihood of default or “mortgage security.”   www.NewsForInvestors.com  

The Federal Reserve offered a mid-year update on the economy, after skipping the last update in March due to the pandemic. After a two-day meeting, Fed Chief Jerome Powell delivered his comments in a virtual meeting with reporters. He highlighted the fact that we are in the midst of a difficult and challenging time with great uncertainty about the future. But that said, he offered a potential timeline for a recovery that could make us economically whole over the next couple of years.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending June 6th, 2020... a pleasant surprise about job growth, a forbearance slowdown, and home design that discourages germs. We begin with economic news from this past week and a surprise report on the job market that sent the stock market soaring. The government’s job growth report shows a 2.5 million hiring increase for the month of May. That brought the unemployment rate down to 13.3% from a high of almost 15%, because of the pandemic.   www.NewsForInvestors.com    

The government is doing everything it can to prop up the housing market. But when those props disappear, will we see foreclosures? Investors capitalized on the foreclosure crisis during the Great Recession. Many single-family homes were snapped up at fire-sale prices, and turned into rentals. But, investors hoping for a similar situation may be waiting for quite some time. According to some experts, we will probably see a surge in defaults and foreclosures, but not at such a grand scale and not for several months or even a couple of years.    www.NewsForInvestors.com    

Some of the nation’s biggest landlords are betting on a surge in demand for single-family rentals in the suburbs. JPMorgan Asset Management and American Homes 4 Rent announced a joint venture to build 2,500 new single-family rentals in western and southwestern high-growth markets. They say the deal will capitalize on a post-pandemic desire to move away from apartments in crowded cities. It will also help address a lack of existing home inventory.   www.NewsForInvestors.com  

It was only a few months ago that cities were worried about how to keep their low-income residents. Now there’s concern that the need for social distancing is chasing big companies and their highly-paid employees away. The post-pandemic office environment is going to be different, and there are signs already that businesses are rethinking their office space needs.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending May 30th, 2020... mortgage rates have hit a new record low, landlords keeping tenants with shorter terms, and buyers want homes with outdoor features.   We begin with economic news from this past week, and signs of life in the housing market. New home sales were up .06% from March to April, although they were down more than 6% from April of last year. But the increase beat analyst expectations, with the biggest rise in the Northeast. Home sales were up almost 8% in that region.   www.NewsForInvestors.com  

Choosing between an Airbnb and a hotel will now include COVID-19 risk factors for many people, and at first glance, some travelers may think hotels are better at keeping things clean. But there are several factors to consider when choosing a place to stay overnight, including cleaning and disinfecting procedures. Both lodging options have their benefits and their risks.   An article in the New York Times gives hotels the edge over home-sharing services like Airbnb and VRBO. It says that, for years, Airbnb has disrupted the travel industry with more affordable, home-like accommodations, but that COVID-19 is now disrupting the disruptor, in reference to Airbnb. That includes other home-sharing options as well, like VRBO.   www.NewsForInvestors.com  

States across the nation are giving businesses the green light to reopen, but where are the employees? It seems that a very generous unemployment bonus, authorized by the CARES Act, may be contributing to a decision to remain unemployed. The government is handing out a $600-a-week bonus on top of regular unemployment benefits/ Now, many are getting more from unemployment than they did when they were working.   The fact that people are getting this bonus has probably contributed to high rent collection numbers. People have had the money they need to keep up with their obligations. That’s the whole point of the extra money, to keep people as close to financially whole as possible.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending May 23rd, 2020... we have a new start to the economy, builder confidence, and markets where home prices are rising.   We begin with economic news from this past week, and the beginnings of an economic reopening for all 50 states. Although reopening guidelines are different from state to state, many are lifting restrictions on recreational activities for Memorial Day weekend, with the appropriate social safety measures.   There’s been a decreasing number of COVID-19 cases and deaths across the nation and in Europe. Africa and other parts of the Americas are still seeing an increase. So the world is not out of the woods yet. But the holiday weekend may mark a turning point for the U.S.   www.NewsForInvestors.com  

While many short-term rental owners can’t attract guests right now, others can’t get rid of them. There’s word that wealthy guests are squatting in fancy summer rentals because of the coronavirus ban on evictions. That’s putting owners in a tough spot. There’s word that property owners are worried they could miss out on the summer tourist season.   It’s not clear if this is happening in other areas, but the New York Post writes that some short-term guests in the Hamptons are refusing to leave, once their reservations have ended. Local landlords and real estate brokers say these tenants moved into their water-front accommodations before the eviction ban went into place and are now saying they can’t afford to pay the rent, or to move anywhere else. And these are not cheap places or low-income guests.   www.NewsForInvestors.com