Jobs in Construction, RE Still best investment, Housing Rebound in May & Evictions on HOLD through August:-( Top Zip Codes to FLIP!
- Jobs in Construction.
- RE Still best investment.
- Housing Rebound in May.
- Evictions on HOLD through August:-(
- Top Zip Codes to FLIP!
- Zillow is Buying Homes Again.
- 2021 will see 1st Home Price Decline in 9 years.
- According to recent information from the Associated GC’s of America: Construction employment increased by 464,000 jobs in May, however the AGC cautioned that the industry remains far short of full employment. In addition, they said the industry is experiencing a 12.7% unemployment rate, the highest for May since 2012.
“The huge pickup in construction employment in May is good news and probably reflects the industry’s widespread receipt of Paycheck Protection Program loans and the loosening of restrictions on business activity in some states.” Said Ken Simonson, the AGC’s chief economist.
2. For the 7th year in a row, Gallup Polls reported more Americans prefer Real Estate over other long term Investments. When broken down, the numbers show that 35% prefer real estate, 21% prefer the stock market, 17% prefer CDs/bank accounts, and 16% prefer gold.
“Americans have become less likely to view stocks or mutual funds as the best long-term investment after U.S. markets dropped by more than a third as the economic implications of the coronavirus outbreak set in last month.”
3. Our government reported that privately‐owned housing starts in May were at a seasonally adjusted annual rate of 974k, which is 4.3% higher than April’s revised number. May’s rate for units in buildings with five units or more was 291k. Privately‐owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,220,000, which was 14.4% higher than April’s revised number. Authorizations of units in buildings with five units or more were at a rate of 434k in April.
4. HUD US Dept of Housing & Urban development in mid-June that they were extending their moratorium on foreclosures and evictions through August 31, 2020. The foreclosure moratorium applies to homeowners with FHA-insured Single Family mortgages.
“While the economic recovery is already underway, many American families still need more time and assistance to regain their financial footing,” said HUD Secretary Ben Carson. “Our foreclosure and eviction extension means that these families will not have to worry about losing their home as they work to recover from the financial impacts of COVID-19.”
5. ATTOM, latest study on US Home Flipping showed home flipping nationwide increased to a 14-year high in Q1 of 2020, while returns dropped to a nine-year low. ATTOM says there were 53,705 single-family homes & condos flipped in Q1, representing 7.5% of all home sales during the quarter, reaching the highest level since Q2 2006. In addition, they said the gross profit on the typical flip also increased in Q1, to $62,300, up slightly from $62k in Q4 2019. However with rising home prices, that profit translated into a 36.7% ROI – the lowest level for home flipping since the Q3 2011.
“Home flipping has gradually taken up a larger portion of the housing market over the last couple of years. But profits are down and are lower than they’ve been since the dark days following the Great Recession, which is a sign that investors aren’t keeping up with price increases in the broader market,” said Todd Teta, chief product officer at ATTOM Data Solutions.
6. From back in March we new about Zillow pausing its Zillow Offers program due to market uncertainty from the Coronavirus pandemic. Well, fast-forward to the present with Housing Wire, reporting that they have resumed homebuying in at least 15 (out of 24) markets where they operate. In addition the report said Zillow is also launching a health-safety initiative to protect customers, employees and partners.
“”Our goal at Zillow is to help people navigate what can be a stressful and complex process, and with Zillow Offers, give them a way to skip over a lot of the hassles and challenges of selling a home today,” said Zillow President Jeremy Wacksman.
7. According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 5.4% (year over year) in April 2020 compared with April 2019 and increased month over month by 1.4% in April 2020 compared with March 2020. However, they also caution that 2021 will mark the first year home prices are expected to decline in more than nine years, due to the lingering impact of the Coronavirus pandemic. Indeed…
“The very low inventory of homes for sale, coupled with homebuyers’ spur of record-low mortgage rates, will likely continue to support home price growth during the spring. If unemployment remains elevated in early 2021, then we can expect home prices to soften. Our forecast has home prices down in 12 months across 41 states.” Dr. Frank Nothaft, Chief Economist for CoreLogic.