Morning Roundup (12/06/2021)– Omicron Fears, Zillow Recovery

Good Morning! Today is Monday, December 6. Former Senate Majority Leader and Republican Presidential Nominee Bob Dole died yesterday. He was 98 years old. Bitcoin recovered from a weekend crash that brought its value below $50,000. Omicron may have been spreading at a New York anime convention before cases were officially confirmed in the US. And in mortgage and housing news… Market-Crash Flashback?: Fannie Mae and Freddie Mac have raised their loan limits to nearly $1 million in some communities. Does that mean lenders are repeating the same mistakes which led to the 2008 crash? Analysts React To Omicron: How will Omicron impact the housing market? Analysts are optimistic it won’t cause significant damage. Zillow Bouncing Back: Zillow is recovering…

CoreLogic: Double-Digit Rent Growth In September

Strong demand and the labor market are fueling single-family rent price increases which remain at record highs. September data from CoreLogic’s Single-Family Rent Index shows rents increased 10.2% year-over-year (YOY), compared to a 2.6% YOY increase in September 2020. Rents increased across all four tiers of rental prices used by CoreLogic. Lower-priced rentals (less than 75% of the regional median) saw an increase of 8.3% YOY, while rents in the lower-middle price range (75%-100% of the regional median) rose 9.3% YOY, both more than doubling their growth from the same time in 2020. Rents for higher-priced properties broke 10%, with higher-middle priced (100%-125%) rents climbing 10.5%, compared to 2.4% in September 2020. Higher-priced rentals (125% or more of the regional…

Analysts See Airbnb As A Major Player In 2022 Housing Market

Airbnb is predicted to increase its inventory by 25% in 2022, giving it huge leverage to impact the residential real estate market next year, according to analyst Chris Linsell. During a presentation at the 2021 REALTORS® Conference & Expo, Linsell, senior real estate writer for TheClose.com, said Airbnb’s expansion will likely negatively impact housing affordability and inventory. “Airbnb (is) not just selling their product to consumers, they are selling to the providers of the product. They are selling twice without holding their own inventory. This unique model opens up an incredible level of scalability,” he said. “Many of those housing units are going to come from the residential real estate market.” He noted that the impact on residential housing could…

HUD Awards $36 Million To Help More Than 250 Communities

By Kimberley Haas More than 250 rural, suburban and urban communities will benefit from $36 million earmarked to produce about 8,000 units of affordable housing throughout the country. U.S. Housing and Urban Development Deputy Secretary Adrianne Todman held a virtual press conference on Tuesday morning to announce the “capacity-building” awards, which are expected to stimulate nearly $150 million in total investments. “We are really focused on building strong and vibrant communities through grants like this and through the work of our local and state leaders,” Todman said. Todman said it has been thrilling to work with leaders at the White House and HUD to stand up these initiatives “that we know will pay dividends for our children and grandchildren in…

NAR: Housing Affordability Improved In August

Housing affordability improved in August for the second straight month, according to the National Association of Realtors (NAR) housing affordability index report. Month-over-month, mortgage payments fell by only 1.1%, while median family income fell by 0.7%. The index hit a low of 146.5 in June but rose to 151.3 in August. But affordability declined year-over-year (YOY), with monthly mortgage payments rising 13.9% to $1,210 from August 2020. Median family income rose only 3.9%. The effective 30-year fixed mortgage rate was 2.89% in August compared to 3% a year ago. The median existing-home sales price rose 15.6% YOY. Home prices are in a seasonal cool-down, which could account for the numbers. But consumer sentiment on home buying continues to trend downward,…

Amazon Invests $2B On Affordable Housing

Amazon on Wednesday announced a $2 billion investment in affordable housing in communities where it has a significant business presence. The online retail giant created the Housing Equity Fund, which is designed to “preserve and create over 20,000 affordable housing units” in the Puget Sound region in Washington state, as well as Nashville and Arlington, Virginia. Amazon has or expects to have at least 5,000 employees in each of these areas in the near future. “Amazon has a long-standing commitment to helping people in need, including the Mary’s Place family shelter we built inside our Puget Sound headquarters. The shelter now supports over 200 women and children experiencing homelessness every night,” said Jeff Bezos, Amazon founder and CEO. “This new…

Affordable Housing Rent Payments Increase

More tenants in affordable housing made payments in October than in any month since early in the pandemic, according to a report released Monday by MRI Software. MRI’s report found: Rent payments increased to 82 percent of the prior year, the first month since June since the rate was over 80 percent.Collections in public housing dropped slightly in October to 94 percent year over year, compared to 98 percent in September. Move-outs in affordable housing decreased by 17 percent year over year, leading to higher occupancy rates for the sector.Move-ins, at 92 percent of last year’s volume, affected the rates to a lesser extent. “The pandemic will continue to affect trends in both sectors,” said Brian Zrimsek, Industry Principal at…