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A federal judge on May 5 threw out the Centers for Disease Control and Prevention’s national moratorium on residential evictions, but agreed to hold the ruling while the government works to reverse the decision on appeal, Reuters reported. The judge said that a moratorium on evictions was not part of Congress’ intent to allow the CDC to help individuals during the coronavirus pandemic.
President Biden is seeking higher taxes on real estate transactions with gains of more than $500,000 — so-called 1031 exchanges where investors defer paying taxes on real estate by rolling profits into their next property — but some experts are particularly worried about the effect on smaller investors, CNBC reported May 3. The taxes would help fund the $1.8 trillion American Families Plan.
The occupancy rate for hotel properties remains flat, but the sector is expected to pick up once consumers start traveling this summer, according to analytics firms STR and Trepp, MBA NewsLink reported May 4. The number of hospitality properties delinquent on their loans or in some form of forbearance has declined, although the sector is expected to face a slow recovery.
So-called “walkable assets” are falling out of favor amongst investors as consumers leave urban apartments for less expensive suburbs and smaller cities and become more dependent on cars, according to data firm Real Capital Analytics, WealthManagement.com reported May 4. Prices are down for apartment properties in central business districts and up the most in car-centric suburbs.
7-Eleven this year is planning to open 150 quick-service restaurants attached to its convenience stores as the company expands its Evolution Store concept nationwide, BisNow reported May 3. Among QSRs, the fast-food category performed the best during the coronavirus pandemic, and through March accounted for 70.2% of the money consumers spent eating out.
The apartment sector is on an upswing, with effective rents expected to reach pre-pandemic levels next year; however, rents in the retail and office sectors are expected to continue declining this year and it remains unclear when rates will start increasing, according to a commercial real estate forecast released by Moody’s Analytics May 3.
The COVID-19 pandemic continues to strain many mortgage borrowers, especially in communities of color, with 33% of borrowers in forbearance residing in predominantly Black or Hispanic neighborhoods, the Consumer Financial Protection Bureau reported May 4. The CFPB also reported a growing number of borrower complaints against mortgage providers.
Housing affordability fell during the first quarter as rising materials costs and supply shortages challenged the sector, the National Association of Home Builders Reported May 6 in its latest NAHB/Wells Fargo Housing Opportunity Index. Families earning a median income of $79,900 could afford 63.1% of homes sold during the first quarter, down slightly from 63.3% during the fourth quarter.
Fewer than five million households missed a rent or mortgage payment in March, the lowest number since the beginning of the coronavirus pandemic, the Mortgage Bankers Association reported May 5. Overall, 23.7% of renters and 14.2% of homeowners missed at least one payment since the onset of the pandemic, but only 8.6% of renters and 6.8% of homeowners missed more than two payments.
Mortgage rates fell again during the past week, the third consecutive week in which rates are under 3%, Freddie Mac reported May 6 in its Primary Mortgage Market Survey. The combination of low and stable rates coupled with an improving economy is good for homebuyers and those looking to refinance.
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