ru - Residential Update

July 2021

Appraisals Part of Effort to Reduce Wealth Gap: White House

The Biden administration announced June 1 that as part of its efforts to increase Black wealth, the Department of Housing and Urban Development Secretary, Marcia Fudge, will lead an interagency taskforce to address inequity in home appraisals. The Appraisal Institute supports the task force, which is consistent with congressional legislation backed by the organization (HR 2553 the Real Estate Valuation Fairness and Improvement Act).

July 2021

Executive Order Reinstates Flood Risk Standards

President Joe Biden on May 20 signed the Executive Order on Climate-Related Financial Risk, which reinstates the 2015 Federal Flood Risk Management Standard that was revoked under the Trump administration, the National Association of Home Builders reported. The FFRMS significantly expands floodplain areas without congressional oversight and mandates that climate-related financial risk be factored into underwriting standards.

July 2021

Biden Administration Seeks to Add $318B for Housing as Part of Infrastructure Plan

The Biden Administration announced May 26 that the American Jobs Plan will include $318 billion to produce or preserve more than two million affordable housing units around the country, Bloomberg CityLab reported. The proposal includes $105 billion in new tax credits, which should boost the number of affordable homes built and maintained every year.

July 2021

Immediate Action Needed to Address Nationwide Housing Supply Crisis, Report Shows

Decades of reduced investment in the housing sector and significant underbuilding have caused a dire shortage of homes that urgently needs to be addressed, the National Association of Realtors stated in its June 16 report Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing. The report revealed an “underbuilding gap” of 5.5 to 6.8 million housing units since 2001.

July 2021

Existing Home Sales Fall for Third Consecutive Month: NAR

Sales of existing homes were down in April — the third consecutive month in which they dropped, the National Association of Realtors reported May 21. However, despite the 2.7% monthly decrease, overall home sales are 20% higher than at the same point last year. The median price for an existing home rose 19.1% year-over-year to $341,600.

July 2021

Nearly All Home Builders Report Materials Shortages — Including Appliances: NAHB

Materials shortages are becoming more widespread, with more than 90% of home builders reporting problems obtaining appliances, framing lumber and oriented strand board; additionally, 87% cited a shortage of doors and windows, according to the NAHB/Wells Fargo Housing Market Index released May 20. The shortages are setting new records, and appliances made the list for the first time.

July 2021

Home Prices Surge While Millions at Risk of Eviction or Foreclosure: Harvard Study

Home price gains surged ahead of income growth last year, elevating the national price-to-income ratio to its highest level since 2006, the Harvard Joint Center for Housing Studies reported June 17 in its State of the Nation’s Housing 2021 report. However, the coronavirus pandemic caused millions to fall behind on housing payments, putting them on the brink of eviction or foreclosure.

July 2021

Numerous Potential Homebuyers Looking to Relocate: Redfin

Nearly one third of potential homebuyers who researched properties online in April looked for homes outside their current area, a 26% increase over those looking to relocate last April, online real estate firm Redfin reported May 26. Sunny cities such as Phoenix; Las Vegas; and Sacramento, California, were atop the relocation list.

July 2021

Residential Foreclosure Filings Increase as Moratorium Ends: ATTOM Data Solutions

Residential foreclosure filings were down in May and totaled 10,821, but on a year-to-year basis, filings were up 23% and foreclosure starts were up 36%, analytics firm ATTOM Data Solutions reported June 15. Among metro areas with a population of at least 200,000, foreclosure filings increased the most in Champaign, Illinois.

July 2021

Continued Home Price Growth Expected to Contribute to Inflation: Fannie Mae

Ongoing home price appreciation is expected to drive inflation higher next year, according to Fannie Mae’s Economic & Housing Outlook released June 16. Additionally, home sales are expected to drop slightly during the second and third quarters due to lack of available inventory and the slowing pace of new construction.