Weekly reports and updated news
June 22, 2020
National News
Fewer Homeowners Need a Mortgage Bailout
Realtor Magazine | 06.19.20
For the third consecutive week, the number of homeowners requiring mortgage relief has dropped, a welcome sign of the market’s long-term health. As of June, 4.6 million homeowners were in forbearance, which is about 8.7% of all active mortgages, according to data from Black Knight, a mortgage research firm. The numbers have fallen by 57,000 compared to the previous week and by 158,000 from May 22, the date when mortgages in forbearance peaked. About 6.8% of all mortgages backed by Fannie Mae and Freddie Mac are in forbearance, and 12.1% of all FHA and VA loans. However, loans held by banks or private label securities grew by an alarming 6,000 in June, according to Black Knight. Borrowers in forbearance are eligible to delay their monthly payments for at least three months and in some cases, for up to a year. The number of loans in forbearance represents more than $1 trillion in unpaid principal, a number that the housing market has looked at cautiously for its potential to spark a wave of foreclosures. Read more
Bidding Wars Heat Back Up
Realtor Magazine | 06.19.2020
A housing shortage that has increased since the pandemic began in March means buyers continue to face steep competition for the limited supply of homes. A new study from Clever Real Estate shows that 42% of buyers who purchased a home between January and May were in a bidding war. Further, the brokerage Redfin reported this week that half of its agents’ offers faced competition in May, up from 44% in April. Competition from buyers making all-cash offers is also driving up competition. Redfin reports that the Boston metro area saw the highest rates of competitive offers, with 64% of its agents there reporting a bidding war in May. Read More
NEW HOME PURCHASE APPLICATIONS ROSE 10.9% YOY IN MAY
Builder | 06.17.2020
Mortgage applications for new home purchases rose by 10.9% year over year in May, as well was 26% month over month, according to the Mortgage Bankers Association’s Builder Application Survey for May. This change does not include any adjustment for seasonal patterns. "The solid increase in new home purchase applications in May is another indication of a recovery in the housing market. MBA estimates that new home sales rebounded 26% last month—a healthy turnaround after three months of declines," says Joel Kan, MBA's associate vice president of economic and industry forecasting. Read More
NAR Plan Seeks To Close Homeownership Divide
NMP | 06.18.2020
For first-time homebuyers entering a market where the supply is far below the demand, the National Association of Realtors (NAR) presented a five-point plan designed to increase the number of African-American homeowners in the U.S. and help close the gap in homeownership rates between whites and African-Americans. “Before the pandemic, America faced a housing shortage of around five to six million homes due to multiple years of underproduction of new homes,” said NAR Chief Economist Lawrence Yun. “Now, in the middle of 2020, the housing shortage has intensified. Consequently, home prices will be pushed higher thereby making ownership opportunities for first-time buyers more difficult. More homes need to be built.” Read More
Sheltering In Place Is Changing What People Want From Their Homes
Forbes | 06.18.2020
Sheltering in place during the coronavirus pandemic has inspired homeowners to tackle home improvement projects that better suit their needs. There are many reasons to renovate that run the gamut from accommodating remote work to sprucing up or adding outdoor living spaces “Our homes have come under the microscope like never before during the months-long sheltering in place,” says Dan DiClerico, home expert at HomeAdvisor, an online home improvement resource. Read More
‘Housing Construction Has Turned A Corner’: Starts, Permits Rise In Latest Data
Forbes | 06.17.2020
New home construction had all but ground to a halt in recent months, as the coronavirus pandemic swept the nation, closing cities and businesses down with it. Fortunately, it appears those days are numbered. According to data released by the Census Bureau this morning, housing starts were up 4.3% in May, with 934,000 new starts recorded for the month. Building permits were up even more, rising 14.4% over April. Single-family permits specifically jumped 11.9%. Read More
The Good, the Bad and the Ugly of the housing market 5 months into the pandemic
Housing Wire | 06.18.2020
Due to COVID-19 and the nationwide shutdown, our economic charts have shown waterfall downturns, V-shaped recoveries and everything in between. It has been a rollercoaster ride with all the scare and none of the fun. Now that we have been whiplashed with negative and positive economic data, I thought it might be… Read More
Local News
Colorado REALTORS? Continue to Respond to COVID-19 Housing Emergency
CAR | 06.19.2020
Colorado Association of REALTORS? Foundation Awards Grants Totaling $125,000 to 11 Colorado Non-Profits in June, in addition to $125,000 granted in May ENGLEWOOD, CO – June 19, 2020 – The ongoing economic impact of COVID-19 pandemic has left many Coloradans unable to make rent and mortgage payments due to layoffs and furloughs. In light of this unprecedented emergency, the Colorado Association of REALTORS? Foundation announced this week it is awarding additional grants totaling $125,000 to 11 Colorado non-profit organizations to assist individuals and families experiencing housing-related emergencies as well as aid in the construction of affordable housing units. Read More
May Delivers “Virtual Reality Reset”
CAR | 06.010.2020.
Virtual tours, virtual open houses, sight unseen purchases, and virtual closings have helped shape a new reality for real estate transactions across the Denver metro area and state as demand remains high and long-term inventory challenges continue to shape the markets, according to the latest monthly housing data from the Colorado Association of REALTORS? (CAR). The month of May delivered record highs for pending/under contract properties in both the seven-county Denver metro region (6,502 single-family and 2,080 townhome/condos) and across the state (10,645 single-family and 2,878 townhome/condo) since CAR began tracking the data more than a decade ago. Read More
Residential, retail development slated for Eagle County parcel
CREJ | 06.15.2020
A Chicago-based developer made its entry into the Colorado market with its purchase of a more-than-74-acre land parcel in Eagle County. The buyer paid $2.58 million – above the $2.5 million list price – for the Tower Center, a 74.08-acre parcel at 11150 U.S. Highway 6 in Gypsum. A Kansas City-based developer sold the property, which had seen a significant amount of interest recently. “At the beginning of the year and during COVID-19, a lot more people were looking at the mountain markets,” said Erich Schmidt of NAI Mountain Commercial, noting that the pandemic prompted people to look at getting away from metro areas to places like Colorado’s mountains. Read More
El Paso County homeless population sees dramatic decrease, survey says
The Gazzette | 06.08.2020
For the first time in five years, El Paso County’s homeless population has decreased significantly, according to results of an annual survey. The Point in Time survey — overseen by the Pikes Peak Continuum of Care, a local decision-making group working to end homelessness — found a total of 1,116 people identified as homeless in the 2020 survey, conducted the last week in January. Those who self-identified as homeless indicated they were sleeping in local shelters, vehicles, camps, abandoned buildings or temporary transitional housing. This year's total of 1,116 reflects a 29% drop from last year’s countywide high of 1,562
Draft guidelines released for allowing concerts, outdoor events in Colorado
Out There Colorado | 06.18.2020.
To many Coloradans, summer means concert season. Fear not, concerts may go on, along with fairs, receptions, and other outdoor events, despite the recent interruptions due to the COVID-19 shutdown. The Colorado Department of Public Health and Environment recently released a draft of guidelines that may be used when the time comes to allow outdoor events once again. Here’s a look at some of the draft guidelines for restarting outdoor events: Read More
CDOT sets aside $4.1 million for COVID-19 infrastructure grants
Out There Colorado | 06.18.2020.
For communities that wish to modify their public infrastructure to promote public health and distancing during the COVID-19 pandemic, the Colorado Department of Transportation is offering $4.1 million for project ideas. Calling them “quick-win activities,” CDOT describes projects like converting parking spaces to outdoor dining as fostering economic development during the pandemic. “Since many of our roads are part of the ‘Main Street’ environment through towns and cities, this is an opportunity for us to do our part for healthy communities and a healthy economy,” said the department’s executive director Shoshana Lew about the Revitalizing Main Streets initiative. Read More