The housing market is notoriously everchanging – we’re benefiting from a strong market at the moment due to the COVID-19 pandemic, but there’s no telling how long that type of market is going to hold. On top of that, this industry is very much dependent on the area that you’re in. Understanding the trends that the market goes through can help you navigate this shifting market and come out on top.
Dwindling Affordability
For the past little while, a combination of low mortgage rates and strong incomes have been preventing any large dips in affordability. However, things seem to have changed for the worse in that area after recent developments.
A study conducted by ATTOM Data Solutions states that affordability has dipped below historical averages in a whopping 61% of US counties; it dropped in 45 of the 50 top markets last year as well.
Extensions to Renter and Homeowner Protections
The COVID-19 pandemic caused a large spike in protections aimed at renters and homeowner protections; the eviction bans, foreclosure bans, and rampant mortgage forbearance options were designed to limp us through the pandemic, but they’re having a marked effect on the market.
Landlords seem to have suffered the most from these arrangements – the lost income from unpaid rent and tenants that they legally cannot evict has caused a lot of strain in the industry. Fortunately, these bans don’t seem to be long for this world, and the balance may be tipping soon.
A Spike in Listings
Supply in the housing market has been a rampant problem for a while, but it seems to be improving. There’s roughly a 4% spike in new listings this year, marking a clear improvement in supply. If you’re seeking rental properties or houses to flip, now just might be your chance.
Rising Foreclosures
Despite the ban on foreclosures coming from the COVID-19 pandemic, they’re still on the rise. One in every 12,700 units had a foreclosure filing last month, with the highest rates occurring in Nevada, Delaware, Illinois, Florida, and New Jersey.