Pending home sales soar while affordability sours, Supreme Court upholds eviction ban while FHFA and CFPB toughen foreclosure moratoriums, and a big construction venture bust in Silicon Valley.
Today in Housing News
NAR: Pending Home Sales See May Rebound, Highest Since 2005
The National Association of Realtors (NAR) said today that pending home sales rebounded strongly in May, reaching the highest index reading for the month of May since 2005. They were up 8% from April and 13.1% from May 2020.
The Millionacres takeaway: Price pressure hasn't dampened demand yet. As for monthly and annual comparisons like this, it'll be interesting to see when they start to come down. For instance, next May could be a perfectly fine month for pending sales but still be way down from this year in terms of year-over-year growth (or decline). That could have a psychological effect on some in the investing market. We shall see.
Home Affordability Takes a Q2 Dip: A Trend to Keep Watching
Skyrocketing home prices have now made buying a single-family home or condo less affordable than historical averages in well above half the country, according to a new report from ATTOM Data Solutions.
The Millionacres takeaway: At what point does affordability become a problem for the residential housing market? After all, sustainability demands a market that can provide houses that people can afford.
Supreme Court Will Not Stop Eviction Moratorium
It's official: The Supreme Court will not back Judge Dabney Friedrich's ruling and lift the just-extended CDC eviction ban.
The Millionacres takeaway: While the Supreme Court's ruling won't do landlords any favors, the Biden administration has already said it won't extend the ban past July 31, and Justice Brett Kavanaugh's concurring opinion upheld the ban but said he considers it illegal. So, the end may well actually be in sight this time.
FHFA Increases Post-Foreclosure and REO Eviction Moratoriums Protections
The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac servicers will not be permitted to make a first notice or filing for foreclosure that would be prohibited by new protections from the Consumer Financial Protection Bureau, DS News reports.
The Millionacres takeaway: There still are a couple million homeowners protected by forbearance plans, and it just got tougher to foreclose on them if that becomes necessary. That's good for them, but it does dampen any inventory growth expected from that unfortunate move, which is not good news for house flippers.
Also in Today's News
How a SoftBank-Backed Construction Start-up Burned Through $3 Billion
Venture-backed start-up Katerra aimed to revolutionize the construction business by mastering every element of the trade at once. Instead, its June bankruptcy filing made clear just how difficult it is for Silicon Valley to disrupt this complex industry.
The Millionacres takeaway: The Wall Street Journal points out [subscription required] that this is one of the best-funded U.S. start-ups to ever go under. Read it for the insight, and maybe how the lessons here can apply to your own personal ventures.