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In this Real Estate News Brief for the week ending March 28th, 2020… ugly numbers for job losses and economic growth, a possible “snapback recovery”, and encouraging news about medical supplies.   We begin with economic news from the past week and a $2.2 trillion dollar COVID-19 rescue package that helps individuals and companies. The short list of money hand-outs includes $100 billion for hospitals and virus-related healthcare, $290 billion for an infusion of cash into consumer pockets, $350 billion for small-business loans, and $500 billion for hard-hit industries, like the airlines.    www.NewsForInvestors.com    

There’s something in it for everyone. The federal government approved a $2 trillion dollar virus relief package last week called the CARES Act. That stands for “Coronavirus Aid, Relief, and Economic Security.” The legislation is almost 900 pages long so it’s not a quick read, but details are emerging on what’s inside. And, there is help for people in the real estate industry including real estate investors and landlords.   I want to talk about the CARES Act, but first, I’d like to mention another big announcement on Monday, March 30th.   The U.S. Department of Homeland Security issued an advisory that said real estate should be considered an essential business.   www.NewsForInvestors.com  

As unemployment claims soars due to “Shelter in Place” mandates in cities across the nation, lenders who offer non-qualifying mortgage loans are also shutting their office doors. There have been several headlines recently about lenders suspending non-QM loans which could impact real estate investors.   An article in HousingWire on March 20th suggested that non-QM lending is the latest victim of the coronavirus. (1) Non-QM loans had become more common in recent years for borrowers who don’t have a traditional income source, and need alternative methods of income verification. Many real estate investors fall into this category. And due to the uncertainty created by the virus, several lenders have recently announced they are suspending non-QM loans.   www.NewsForInvestors.com  

The U.S. was expecting to have one of the best spring home-buying seasons in years, until we got hit with the Coronavirus daily news. Still some markets continue to boom, while others are on a time-out.    In California, where there’s a statewide shelter-in-place order, the California Association of Realtors also advised against any open houses, home tours or face-to-face meetings with clients. (1) That scene is playing out in other markets as well, even as low interest rates dangle like a carrot in front of our noses.   www.NewsForInvestors.com  

There’s been a lot of talk about rent moratoriums and eviction bans for struggling tenants, but what happens when landlords can’t pay mortgages and other expenses for those very same rentals? There’s been a growing chorus of questions and lobbying efforts in regard to relief for property owners, and some big announcements about forbearance options that apply to landlords in both the single-family and multi-family realm.   It’s now critical that people are able to “shelter in place” to help stop the spread of the virus. Many local governments have issued orders to stay at home, except for essential needs that include jobs that are also considered essential. While some people are going to work and returning to the safety of their homes, many more are laid off and sheltering in place 24/7.    www.NewsForInvestors.com  

An invisible enemy is attacking, and it doesn’t seem to matter where you are or who you are.. The Coronavirus is quickly spreading to all parts of the world. Whether people are sick or not, many can’t go to work, and that could mean missed rent payments -- especially for people living hand to mouth. So what is the appropriate course of action?   Headlines across the nation are echoing the same idea -- that cities, counties, states, and even the nation, impose a temporary moratorium on evictions while this virus scenario plays out.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending March 21st, 2020... we have economic news that’s contaminated by the coronavirus, a tax day reprieve, and mortgage moratoriums.   We’re in an unprecedented situation right now as this microscopic virus threatens the health and safety of everyone in the world. It’s gotten to the point of statewide lockdowns in California and New York to help slow the spread of the virus. Other states are likely to follow. There are also bans on non-essential travel across the northern and southern borders, but President Trump says we’re not at the point of a national lockdown, just yet, although other nations have done so.   www.NewsForInvestors.com  

There’s nothing more unifying than a common enemy, and that’s what the nation is facing right now -- a fast-moving virus that can be as mild as a common cold or flu for most people, but absolutely deadly to others. The Federal government and the Federal Reserve are taking drastic steps to shore up the economy, while individuals and families are going into survival mode. It’s not the end of the world, however. Good things will come out of this. As exponential tech entrepreneur and futurist Peter Diamandis said in a blog about the virus, “With Pause, Comes Opportunity.”   www.NewsForInvestors.com  

In this Real Estate News Brief for the second week of March.. we have coronavirus repercussions, mortgage relief options, and something that might lift your spirits from Airbnb.   We begin with economic news from this past week and a half.   So much has happened because of the coronavirus. The Fed cut interest rates to zero and launched a $700 billion stimulus program. President Trump acknowledged that the pandemic is “really bad” and issued guidelines to help prevent the spread of the virus. Cities across the nation are shutting down bars, restaurants, and public gatherings. Stores are dealing with panicked buyers. Officials are encouraging people to shelter in place. There’s talk of shutting down our borders and postponing the Presidential election. The stock drop has now erased about 80% of the gains seen since the 2016 election, or what was previously called “The Trump Bump.” Companies will be reporting their first quarter earnings and many are expected to miss their forecasts. The second quarter will lik

What a week. While the Coronavirus and its effect on Wall Street, the economy and of course, our health and safety has dominated our conversations, I’m going to focus on how it could affect the U.S. housing market. As we know, home sales were headed for a hot spring season because of low mortgage rates and a strong economy. And then the coronavirus came along. It has brought mortgage rates even lower, but it’s also causing an economic disruption like we haven’t seen before. Will it be a minor blip on the charts? Or… is this the black swan event that could usher in that recession so many people have been fearing?   www.NewsForInvestors.com  

The mortgage business is blazing a new trail right now. Rates have fallen to a record low. They have almost hit 3%, but they aren’t as low as they could be. Experts say they should have dipped below 3% by now but that busy lenders are holding back on lower rates to help control demand. It’s anyone’s best guess as to what happens next, but it’s quite possible that even lower rates are on the way.    www.NewsForInvestors.com    

In this Real Estate News Brief for the week ending March 7th, 2020... we have an emergency interest rate cut, all-time low mortgage rates, and a virus-inspired surge in real estate investing.   We begin with economic news from this past week, and a quarter percent rate cut by the Fed. The central bank cut rates to help protect the economy from the effects of the coronavirus. The overnight lending rate is now from 1 to 1.25%. Fed Chief Jerome Powell offered reassurance that the U.S. economy is still strong, but he says the spread of the virus will likely affect economic growth. But, he says “we will get to the other side” and “return to solid growth and a solid labor market as well.”   www.NewsForInvestors.com    

States that aren’t tax-friendly to retirees are making some changes to keep their seniors from moving away. Maryland is one of them. The governor says that high taxes are driving seniors to places like Florida which is the most tax-friendly state in the nation for all age groups. But the tax situation is especially important for people trying to stretch their retirement dollars, and there are big differences in the kinds of tax breaks you get from each state.   www.NewsForInvestors.com  

Pet-friendly rentals are becoming a “must-have” for many renters. Zillow says that 46% of renters have pets, and 48% won’t rent a place without that option. For many landlords, it’s much easier to say “no.” But while they are avoiding a few risks, they are also missing out on some big benefits, including additional rental income.   There are several benefits to going “pet-friendly” starting with a larger pool of applicants because almost half the renter population has a pet. To offset the potential risk, many pet-friendly landlords charge an additional amount each month for the pet, along with a pet deposit.   www.NewsForInvestors.com

In this Real Estate News Brief for the week ending February 29th, 2020... we have an early launch to spring sales, concern about the coronavirus, and top cities for population growth.   We begin with economic news from this past week. The spring homebuying season is off to an early start. New home sales rose 7.9% in January. That’s more than 18% higher than January of last year. It’s also the highest level of sales since July of 2007. That’s despite higher home prices.   www.NewsForInvestors.com  

As homeownership gets more expensive, Millennials are getting more resourceful. The National Association of Realtors says the number of first-time buyers who bought homes with housemates doubled in 2019. It wasn’t a huge percentage, but some experts say it could be the future of housing -- at least for people trying to buy their first homes.   www.NewsForInvestors.com  

Nebraska isn’t waiting for the ax to fall on housing affordability. State lawmakers are debating legislation that will allow the upzoning of single-family neighborhoods. It’s called “The Missing Middle Housing Act” to address future housing issues before they become a problem. CityLab described the effort as a way to “win the battle before the war begins.”   www.NewsForInvestors.com  

HUD is hoping to make it easier for landlords to comply with Fair Housing Rules by issuing new guidelines on assistance animals. The U.S. Department of Housing and Urban Development says there’s been a huge increase in the number of requests for emotional support animals, including many that are not legitimate. The agency says the new guidelines offer some clarification of the rules and step-by-step guidance for landlords.   www.NewsForInvestors.com  

In this Real Estate News Brief for the week ending February 22nd, 2020... the spring construction boom, the latest surge in foreclosures, and the new Gen Z homebuyers.   We begin with economic news from this past week. The latest report on existing home sales shows a dip in January. According to the National Association of Realtors, they were down 1.3% to an annual pace of 5.46 million homes. www.NewsForInvestors.com  

A sleepy town in North Carolina has become the victim of its own popularity. Lake Wylie is a lakefront community that has mushroomed in size since the year 2,000. Unfortunately, population growth has outpaced the town’s ability to keep up, and local officials have placed a temporary ban on new development. This is just one example of a city that needs “smart growth” instead of “fast growth.”   www.NewsForInvestors.com