So much has been said about the eviction and foreclosure moratorium on this site. Many LLs do not like the outside influences on the housing market. I believe many folks are missing the multi-million dollar question

So after this moratorium is lifted, what are your opinions on the direction of the housing market? Please defend that position

A flood of bums looking to rent from us.

Once the moratorium on foreclosures is lifted, its party time for us! Unless the government gives owners a get out of jail free card on this. An olive branch of sorts to

Can we discuss how this will impact the HOUSING MARKET and not the rental market.

I am inclined to think that 6-10 months after the moratorium is lifted that it will be shopping time for single family houses as the banks snap the whip. I don't think it will be a sudden down tun as I believe it will take time for banks to file and follow the legal process of foreclosure.

As for multi-families, I have been listening to some of the brightest minds in the industry cry that they are not happy with the outside influence. What I am thinking if the best folks are feeling pain, then just normal folks or rookies - they should be ready to be running for the doors. I think now is the time pick up multi family units.

Now locally our housing market inventory is only about 55% of what it was in March. If a place is move in ready, it will not last on the market if it is anywhere close to market value. Can I explain that.......I am having a hard time

I am very familiar with Chula Vista.

In the 1990's they had an excellent experimental program that encouraged home ownership by having the city guarantee a down payment on purchases providing you lived in the house for a certain amount of time. The longer you were there, the city got less of your appreciation.

When I was in service I actually used to roller skate in CV.

I think that decent people will continue ro leave larger cities and places with riots and that are run by socialists. Prices in outlying areas will be strong. Prices in bad areas will go down and likely way down.

Ray,

I suspect the moratoriums on foreclosures will continue so the flood of foreclosures will not come soon.

Locally houses are selling like crazy. Fast. At or above list.

Local production builders are running at full speed, taking advance orders.

Rates are super low so buyers have an easy entry.

A realtor called it Panic Buying - uuers snatching up what is available because supply is small, prices rising, and rates still low.

They are getting a lot of house for a monthly payment cheaper than rent.

I can now see the politicians getting big-time ignorant all over again with extremely loose lending standard practices once again in a full-on effort to benefit/save all the deadbeats that quit paying their rent and are finally (at some point) getting kicked out and in danger of being homeless.

You can bet the Pres-elect B and Ms. Pelo si will be leading the way with the support of Bernie an AOC. And, of course, after a couple of years it will all come crashing down...AGAIN. But in the meantime, it will keep housing prices going up. That is until it all comes crashing down!

OMG - trying to warp my head around Ray on roller skates! : )

I'm disappointed by the mortgage moratorium, because I'm hoping for some good SFH deals to make purchases in 2021. It still will come, maybe just delayed.

Now I'm thinking the best placebo look for a motivated seller will be tired landlords. That should provide inventory to buy before foreclosures are processed.

Fully rehabbed, retail house market is still very strong here. I don't see that changing any time soon. Fast sales for list price & more.

I predict no noticeable effect on housing market.

"Rent houses" will still be rent houses. There is a shortage of SFH rent houses now; there will still be a shortage post moratoriums. Good tenants will get good housing. Unqualified tenants who milked the moratoriums will have to pay higher deposits, get co-signers, or will be crashing on parents' couch for awhile.

Regarding homeowners: no one is building "affordable" homes in my town. Starter homes are around $170,000 and up, which requires more income than the median household $50,000. If you have dual income professionals or skilled tradesmen, you're good to go. If you're a $15-$20 / hour semi-skilled or unskilled worker, you're stuck with a rental unless you're okay owning your home in a neighborhood made up of mostly rentals. This isn't inherently bad, but not a lot of people will buy those and values tend to stagnate. People want new, fresh, and trendy if they can afford the payments. There's not much different in payment between a $120,000 house and a $170,000 house...$538 vs. $763 on a 30-year amortization at 3.5%. $225 ....but you have to qualify! A lot of folks can't because they owe so much on student loans, cars, credit cards, etc.

Money is stupid cheap right now and will probably remain so for the foreseeable future. If we see government backed 40-year mortgages, maybe some of the folks in the preceding paragraph will be able to buy starter homes. That may be the next Govt "solution" to the problem of affordable housing: not creating more supply to bring down prices, but rather making existing supply accessible to less qualified borrowers, which in turn will drive up the price.

Quiet honestly, I am still confused by the whole thing(no surprise, I know).

Other then the reasons Brad mentioned, I don't understand why houses are selling like they are. I mean, if you listen to the media and politicians, everyone is out of work and the economy is bad but, I don't see it. And from most on this site, rents are being paid and tenants are working. I don't even know why they keep talking about stimulus money. I realize that I don't get out much but...What am I missing?

As far as after the moratoriums are lifted, whenever that is, who knows, I think that there will be some evictions, because of all the tenants playing games and not really affected, but I don't think there will be as many as the media portrays and the same goes for foreclosures. I think some of the foreclosures will also be from owners playing the game.

Why would the banks be lending money to all of these buyers if they know that eventually there will be a lot of foreclosures? I really don't understand that. So will there really be that many? Do they know something that we don't?

If there are a lot of foreclosures then it would be a good time to buy. The thing is, when is it going to happen? I mean really, people have been saying this for a while and then it doesn't happen. The housing market just keeps booming and prices keep going higher, even during a pandemic.

Panic buying is a good term for SFH. 17 of the last 42 homes to be listed in the MLS had an offer on them before the listing was two weeks old.

I am not sure what will snap the cycle.......but I don't like hearing terms like "Panic" normally. I have been slowly shifting into a more liquid position so I am ready to vacuum up a few deals.

I agree - burned and burned out LLs will be selling.

As in any crisis the person who can figure out a way to make things work will get rich.

Locally, much the same as Brad described above.

Been watching the sherieff sales... less on the list than normal. So either people are paying or there a ton of federal back loans that the foreclosure moratorium is affected.

In my area of SC our situation is the same as SID noted in Regarding homeowners: The people in the 15-20 buck level or stuck - and we have a lot of those folks - with basic construction in the 100/110 SF pre covid - The numbers just don't work for those folks.

Banks would absolutely love it if there were 50 year loans.

I'm not thinking much will change in SFH's in 2021. There will be a few more foreclosures but not a bunch. Anyone who is behind on their mortgage can likely cash in on the last appreciation cycle so they aren't underwater as they are normally. Money will remain free to re-energize the market after the pandemic for probably a year so buyers will continue to be plentiful. I'm thinking the down cycle will happen a year or two later. Free money will overstimulate the economy, inflation will increase, mortgages will turn upside down and the picking will be ripe. As for burned out landlords, I would have expected that they would already be out or getting out now. They have been dealing with this for 10 months now.

Ray, why do banks not do fifty year loans now then?

One of the reason buyers want turn-key homes is that they do not have the skills or the TOOLS to do home renovation. It took us decades to accumulate our tools!

In the over-50 crowd, a college education is less the norm than it is today for the younger folks. They've got plenty of "book learning" but few life skills.

They are also connected constantly - no time to sit there and say, "I wonder if I could move that wall?"

2020 business winners have been furniture, RVs, gardening, canning and cooking. Losers have been malls, restaurants, airlines, cruises, theaters.

Pre COVID, The buzzwords was experiences, as in; we won’t spend our money on things, we instead want travel. People interested in making their house a home is a positive for my business.

Hmmmmm

So if the value of the dollar would go down, then assets that are based on the income approach of appraising would do better than real estate using comp value methods.