Real Estate News: Real Estate Investing Podcast

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What the Government is Doing to Prevent a New Wave of Foreclosures Jul 31, 2021

Show notes

For the full transcript, click on the Notes tab on the podcast player for this episode on our website: www.NewsForInvestors.com.

Transcript

00:00:00

[Speaker] Kathy Fettke: Americans behind on their mortgage payments are facing the end of a long pandemic-induced foreclosure ban. The moratorium officially ends on July 31st for federally-backed mortgages, and with forbearance programs also coming to an end, the government is offering new options to keep borrowers from losing their homes.

Hi I'm Kathy Fettkie and this is Real Estate News for Investors.

The pandemic left millions of Americans unemployed and struggling to pay their mortgages. Many went into forbearance programs that allowed them to put their payments on pause. Black Knight says the number of loans in forbearance peaked last August and September at about 4.4% of all active mortgages. But those numbers have been dropping over recent months.

Forbearance Volume Drops to about 2 Million

According to the latest survey by The Mortgage Bankers Association, servicers are reporting that forbearance volume has dropped for at least 19 weeks in a row. As of July 4th, it fell another 11 basis points to about 3.76% of all active mortgages. That's about 1.9 million homeowners who are currently in forbearance plans. (1)

A large portion of the loans are backed by Fannie Mae and Freddie Mac. The MBA says that the share of government-backed loans in forbearance dropped 8 basis points to 1.91%. And it's the second week in a row that those loans dipped below 2%.

The MBA's chief economist, Mike Fratantoni, says that forbearance rates have been coming down quickly since April, and that delinquency rates were also lower in June -- meaning that many borrowers are getting their finances and mortgage payments back on track.

But he also says that: "Borrowers who are exiting forbearance now are likely to have been in relief for over a year, with almost 60% of borrowers in forbearance for longer than 12 months." You may remember that borrowers could get up to 18 months of forbearance. These delinquent borrowers must now get back to making payments, or risk losing their homes because they will no longer be protected by a foreclosure moratorium once their exit forbearance.

The foreclosure moratorium was extended one last time in June, for an additional month, until the end of July. The forbearance enrollment window was also extended three months, until the end of September, so some borrowers may still have many months of forbearance protection ahead of them. But to help borrowers who are currently exiting forbearance programs, the government is offering new options.

Government Offers Help for Borrowers

One is a loan modification and payment reduction plan. (2) Homeowners with loans backed by the FHA, the FHFA, the VA, and the USDA will be able to extend the length of their loans with lower interest rates. This help will be offered to borrowers who are still impacted by COVID-19. That's defined as homeowners who are "looking for work, re-training, having trouble catching up on back taxes and insurance, or are continuing to experience hardship for another reason." Loan modification options will also differ depending on the agency. (3)

For a loan backed by Fannie and Freddie, borrowers will be able to lower their principal and interest payments by 25%. That will include interest at the current market rate with a new 30-year loan term.

For a USDA loan, borrowers will get a 20% reduction with reduced rates, longer terms, and something called a "mortgage recovery advance." That has to do with repaying previously missed payments.

Borrowers with a VA loan, will be able to get a reduction of 20% or more by spreading the payments over 40 years instead of 30. That could reduce monthly payments, but will probably add more total interest to the loan.

Ginnie May is also working on a new securities pool that will give all the agencies the flexibility to extend mortgage terms to four decades. But that pool won't be up and running until later this year.

The FHFA has also killed the controversial "adverse market fee." That was a 50-basis-point fee added to refinancing loans during the pandemic. (4)

The FHFA began charging that fee last year to cover higher costs and risks during the pandemic. Critics claim it was imposed to help raise capital for Fannie and Freddie during last year's refinancing boom. It is being eliminated as of next month.

The Consumer Financial Protection Bureau is also offering some homeowner protection. It is telling lenders that before any foreclosure proceedings can take place, they have to reach out to borrowers to see if they qualify for a loan modification or a lower interest rate.

The next few months could be a bumpy ride for some delinquent borrowers, but it appears they will have some options. You can read more about some of these changes by following links in the show notes at newsforinvestors.com.

You'll also find a link to join our RealWealth network of investors. It's free and easy to join. As a member, you'll have access to the Investor Portal where you can view sample property pro formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

If you like our podcasts, be sure to subscribe, and leave us a review!

Thanks for listening. I'm Kathy Fettke.

Links:

1 - https://www.housingwire.com/articles/forbearance-exits-are-speeding-up/

2 - https://magazine.realtor/daily-news/2021/07/26/foreclosure-ban-nears-end-white-house-vows-more-aid

3 - https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/23/fact-sheet-biden-administration-announces-additional-actions-to-prevent-foreclosures/

4 - https://www.housingwire.com/articles/fhfa-to-kill-the-adverse-market-fee/

The Real Estate News Brief - Cheaper Refi's, Hot Market for Investors, & Airbnb for Backyard Pools Jul 30, 2021

Show notes

For the full transcript, click on the Notes tab on the podcast player for this episode on our website: www.NewsForInvestors.com.

Transcript

00:00:00 Intro Music

[Speaker] Kathy Fettke: In this Real Estate News Brief for the week ending July 24th, 2021… why refi's are getting cheaper, what investors are doing with this hot market, and how homeowners are making money from their backyard swimming pools.

Hi, I'm Kathy Fettke and this is the Real Estate News for Investors.

Economic News

We begin with economic news from this past week, and a jump in the number of people applying for unemployment benefits. Initial jobless claims were up 51,000 to 419,000 in the last week. It's the highest level in two months, but the increase is "not" due to the pandemic. As MarketWatch reports, claims were higher in auto manufacturing states like Michigan, Kentucky and Texas because plants are shut down during the summer for retooling. (1)

Existing home sales rebounded in June. They had been heading lower for four months due to the tight inventory, but there's been an increase in listings, and that's boosting home sales. Inventory levels are currently at 2.6 months of supply. That's up from 2.5 in May. It takes about 17 days, on average, for homes to sell. (2)

Builders are also increasing their output. June housing starts hit their highest level since March. They were up 6.3% from May to June, and are up 29% year-over-year. Permits were down a bit however. They dipped 5% from May but are still 23% higher year-over-year. (3)

That dip in permits may reflect a dip in home-builder confidence. The monthly index fell one point in July to a reading of 80. Anything over 50 is a positive sign of builder confidence. The National Association of Homebuilders says builder confidence has dropped somewhat because of a shortage of workers, construction materials and buildable lots. (4)

Mortgage Rates

Mortgage rates dipped quite a bit this last week. Freddie Mac says the average 30-year fixed rate mortgage was down 10 basis points to 2.78%. The 15-year was also down 10 points to 2.12%. The report says that rates have dropped because of concerns about the Delta variant of the Covid virus, which is putting pressure on Treasury yields. And when Treasury yields drop, so do mortgage rates. (5)

In other news making headlines…

Bye-Bye to Dreaded Refinancing Fee

A controversial fee added to refinancing loans during the pandemic has been eliminated, and that will lower the cost of most refi's. The Federal Housing Finance Agency announced that, starting in August, lenders will not be required to pay an adverse market fee of 50 basis points to Fannie Mae and Freddie Mac. That fee has been, of course, passed on to borrowers. (6)

The FHFA began charging that fee last year to cover higher costs and risks during the pandemic. Critics claim it was imposed to help raise capital during last year's refinancing boom. The GSEs have done well throughout the pandemic. As Housingwire reports, Fannie Mae reported $5 billion in net income for the first quarter of this year while Freddie Mac reported $2.8 billion.

Investors Pouring into the Rental Market

The number of homes purchased by investors set a new record in the second quarter. A Redfin study shows that investors bought almost 68,000 U.S. homes worth a record $48.5 billion. That's a 15.1% increase from the first quarter, and a 106.7% increase from the same quarter last year. (7)

Redfin says that investors are buying about one in every six homes, and that multi-family properties are still the most popular. But it says single-family homes and condos are gaining ground.

Redfin senior economist, Sheharyar Bokhari, says: "Investors see soaring home prices as an opportunity. With housing values consistently on the rise, solid returns are pretty much guaranteed -- especially when you're an investor who has access to extremely cheap debt."

But it's interesting to note that about 75% of the investor purchases were financed with all cash. That's the highest level of all-cash investor home purchases since 2018. It's also much higher than the national average of 30% for all buyers, although that represented a big increase from last year, as well. (8)

Airbnb for Backyard Pools

If you can't rent your home to short-term guests, what about your backyard pool? That's apparently what some people have discovered as a way to earn extra cash. Realtor.com reports that "homeowners are listing their underused private pools online to rent them out for a few hours" and the trend is being called "Airbnb for backyard pools."

Realtor mentions one pool rental site called Swimply. It has about 13,000 pool owners signed up in about 125 markets. And reservations are reportedly "booming."

That's it for today. Check the show notes for links. And please remember to subscribe to our podcasts and leave a review if you like what you hear.

You can also join RealWealth for free at newsforinvestors.com. As a member, you have access to the Investor Portal where you can view sample property pro formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

Thanks for listening. I'm Kathy Fettke...

00:05:32 Closing Music

End

Links:

1 - https://www.marketwatch.com/story/u-s-unemployment-claims-jump-51-000-to-nine-week-high-of-419-000-11626958688?mod=economic-report

2 - https://www.marketwatch.com/story/existing-home-sales-rebound-in-june-after-four-months-of-declines-11626963388?mod=economy-politics

3 - https://www.marketwatch.com/story/construction-of-new-homes-improves-but-home-builders-hold-the-key-to-the-housing-markets-trajectory-11626785317?mod=economy-politics

4 - https://www.marketwatch.com/story/home-builder-confidence-wanes-as-materials-and-labor-shortages-continue-11626703703?mod=economy-politics

5 - http://www.freddiemac.com/pmms/

6 - https://www.housingwire.com/articles/fhfa-to-kill-the-adverse-market-fee/

7 - https://www.redfin.com/news/investor-home-purchases-q2-2021/

8 - https://www.redfin.com/news/all-cash-home-purchases-2021/

9 - https://magazine.realtor/daily-news/2021/07/22/homeowners-are-renting-out-their-pools-for-extra-cash

Get Help from iBuyers to Make Cash Offers & Win Your Bidding War Jul 26, 2021

Show notes

Audio Transcript

00:00:00 Music Intro

[Speaker] Kathy Fettke: Competition is so fierce among homebuyers, that we're seeing a surge in all-cash offers. A new Redfin study shows that all cash-offers are up almost 5% nationwide in the last year. There are also a host of start-ups that help buyers make cash offers and they are expanding.

Hi I'm Kathy Fettke and this is the Real Estate News for Investors.

The Redfin study found that all-cash offers rose from 25.3% last year to 30% this year. (1) Redfin used county records dating back to January 2001 for this study. You may remember the last big surge happened during the recession when cash offers grew to as much as 34.1% in 2011 and 2012. We're not quite there yet, but the lack of inventory is making the market much more competitive.

Surge in Cash Offers

Many of those cash offers were from investors, but in today's market, people buying their own homes are coming up with cash. A Redfin real estate agent in Idaho says she been seeing more cash offers over the last year than she's ever seen in her career. Shauna Pendleton says: "I just sold a $700,000 home to a cash buyer last week. The entire $700,000 came from his E*Trade account."

She says another way that buyers are getting the cash they need is by selling their homes in expensive cities and moving to places where home prices are lower. That's a strategy that's become popular because so many people can work remotely.

Pendleton says: "Affluent homeowners in Seattle, Portland and parts of California are selling their homes for $1 million or $2 million. Then they're coming to Boise, where they're buying houses that are twice the size for half the price."

There's also been an increase in all-cash offers from investors who are coming back into the market after the initial pandemic slowdown. Redfin says there was a 2.7% increase in home purchases by investors during the first quarter of this year.

But coming up with the cash isn't always easy, especially when you have to sell your home to get the cash you need to buy a new one. Not having that liquidity is a big a disadvantage when there's a lot of home-buying competition. Redfin says that about two-thirds of the offers written by Redfin agents wind up in a bidding war.

iBuyers Help Buyers Compete

That's created a market for companies that will help homebuyers by paying them cash for their homes so they can buy a new home before they have to move out of the old one. There are several so-called iBuyers in this space such as Opendoor, Ribbon, Accept.inc and Flyhomes.

Flyhomes just announced a huge expansion of its business with $150 million in funding from venture capitalists. (2) It's a five-year-old start-up that plans to double its workforce and move into new markets. It's currently operating in some big markets including Seattle, the San Francisco Bay Area, Los Angeles, San Diego, Portland, Oregon, and Boston. (3)

Buyers working with Flyhomes must get pre-underwritten so they know how much of a home they can buy. The company will then provide a short-term loan so the buyer can buy the new home. Once the old home sells, Flyhomes will refinance the short-term loan into a long-term loan. Any proceeds from the sale will go toward the down payment.

Flyhomes does have a brokerage that can finance the long-term loan. The website shows some sample rates for someone with excellent credit, and the rates for a 30-year fixed were below 3%. The company also offers a sales guarantee for the old home. If it doesn't sell within 90 days, the buyer will have the option to sell it to Flyhomes, or leave it on the market.

Accept.inc also raised millions of dollars to expand. It recently announced $90 million in funding and currently operates in Colorado. (4) But the company considered the leader in this iBuyer category is Opendoor. (5) It was founded in 2014 and operates in 41 major metros across the country. It offers a similar service to buy homes and provide financing to homebuyers. Ribbon is also similar. It operates in North and South Carolina, Tennessee, Georgia, Texas, and Florida. (5)

Pros & Cons of Cash Offers

One thing to remember is that sellers don't always want a cash buyer. Some may need time to close on a new home, and prepare to mov. A buyer who's getting a mortgage might be a better option in that case. Sellers may also get a higher price if they go with the buyer who needs a loan, but much will depend on the details of the offer.

Those drawbacks aside, there are several reasons why sellers like cash offers. MarketWatch lists five reasons why they can benefit sellers. (7)

1 - There's a higher chance that the deal will go through.

2 - The sale takes place more quickly.

3 - There are usually fewer contingencies.

4 - Closings are less complicated.

5 - Appraisals are not required.

A decision on whether to accept a cash offer will probably be based on the offers. Although a majority of offers are now over list price, a significantly higher offer from a buyer seeking a loan could be the winner.

For buyers, choosing to go with an iBuyer might give you even more options. Just remember to use your calculator to determine how you benefit financially from any of these options.

Join RealWealth today to find out how to build wealth with new and renovated single-family rentals. Membership is free, and will give you access to the Investor Portal where you can view sample property pro formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more. To join, go to newsforinvestors.com.

If you like our podcasts, be sure to subscribe, and leave us a review!

Thanks for listening. I'm Kathy Fettke.

00:06:01 [End]

Links:

1 - https://www.redfin.com/news/all-cash-home-purchases-2021/

2 - https://www.flyhomes.com/

3 - https://www.businesswire.com/news/home/20210610005171/en/Real-Estate-Innovator-Flyhomes-Raises-150M-in-Series-C-Financing-to-Accelerate-Expansion-and-Level-the-Playing-Field-for-Homebuyers-Amidst-Record-Setting-Housing-Market

4 - https://accept.inc/

5 - https://www.opendoor.com/faq

6 - https://www.ribbonhome.com/faqs

7 - https://www.marketwatch.com/story/the-pros-and-cons-of-taking-a-cash-offer-when-you-sell-your-home-11624557948

Should you List Your Home on the MLS or Sell Privately? Jul 22, 2021

Show notes

Transcript

00:00:00 music

[Speaker] Kathy Fettke: The MLS isn't the only place to find homes for sale. There are studies that show more and more sellers are opting for exclusive listings, and that is limiting buyer options. Also known as "pocket" or "whisper" listings, buyers might want to work with an agent who has them. But beware, pocket listings are best for the broker, and not always the best option for buyers and sellers.

Hi I'm Kathy Fettke and this is Real Estate News for Investors.

There are many reasons for the current shortage of homes for sale. The pandemic delayed many seller plans to list their homes. The record low mortgage rates encouraged many to refinance with dirt cheap loans and remodel instead of moving. Many baby boomers are choosing to "age in place" which keeps those homes off the market. And there's been a housing gap, in general, for many years. But there are headlines out there that blame another phenomenon. According to the Washington Post, many real estate experts say there's been an increase in these so-called pocket listings, which keeps them out of the public view. (1)

Increase in Pocket Listings

Also known as office exclusives and private listings, these homes are not listed publicly on the MLS. They are marketed privately to potential buyers and other agents and brokerages.

A realtor in the D.C. area told the Post: "We're seeing an increase in the number of office exclusives, and I'm not a fan of them from the consumer perspective." But he says an increase in buyers makes it possible to attract more of them to these private listings, even though they don't really benefit the buyer.

They are not that great for the seller either, but they are good for brokers who can earn the entire commission for both seller and buyer. So there's incentive for the broker to encourage private listings.

Why Sellers Choose Pocket Listings

Sellers may also have a few good reasons to choose this strategy, and one big one for not choosing it. Moving.com offers some pros and cons. (2)

1 - Sellers may want to test the market and see if buyers are interested.

2 - Sellers may want to test a price especially if they aren't willing to negotiate.

3 - Sellers may want to keep their real estate transactions private and avoid an open house.

4 - Sellers don't want their home to languish on the MLS and be viewed as a problem.

On the downside, sellers will have fewer buyers considering the purchase of a home. That could mean less competition, fewer people to bid up the price, and fewer offers to choose from.

Not Much Benefit for Buyers

For the buyer, pocket listings make it harder to find those homes. Many sellers also choose pocket listings because they don't want to negotiate, but in today's market, that could actually hurt sellers since a majority of them are offering more than the listing price.

Another drawback with pocket listings is their potential to create a bias in the market, because real estate agents may end up marketing homes to certain people. Redfin CEO Glenn Kelman says: "Study after study shows that pocket listings disproportionately exclude people of color." He cites housing market researcher Elizabeth Korver-Glenn who told him that a ban on pocket listings would help close the race gap in homeownership.

Her research shows that many brokers will market private listings to their own connections, and those connections will reflect their own ethnicity and background. That would naturally create racial subdivisions in the marketplace.

Kelman told the Post: "We have to ask sellers to be part of supporting the Fair Housing Act." But some agents feel that a policy by the National Association of Realtors that's meant to prevent private listings, actually encourages them.

NAR passed the Clear Cooperation Policy in 2019. It requires MLS members to list homes one day after they have been marketed in any way to the public. But it also gives sellers the option to keep their homes off the MLS. And apparently, those sellers have grown in number.

Redfin data shows that the number of homes sold as pocket listings rose 67% since November of 2019. They accounted for 2.4% of the market then, and currently account for about 4%. But some experts dispute that data saying that homes may be selling so fast, they don't make it to the MLS.

Compass Promotes Private Listings

The Post reports that Compass real estate has been the most aggressive brokerage to promote private listings. It even has a page on its website that's dedicated to this approach, called "Compass Private Exclusive." It lists a bunch of reasons why sellers might want to be more discreet about selling their homes. Those reasons include moving for a new job, a change in family circumstances such as a marriage or a divorce, health issues, a desire to avoid open house events and interior photos for security reasons or to keep personal belongings private. These are just a few examples.

Some say private listings are not a big problem for sellers if they know the limitations. But D.C. area realtor David Howell says: "The real problem is when companies have a strategy to intentionally withhold a significant percent of their listings from the MLS. That ultimately benefits the company, not sellers and not buyers."

He says that consumers benefit the most from competition and cooperation. Private listings don't do much for that dynamic. It's something to be aware of as you search for properties, and want more complete knowledge of what's on the market. Check for pocket listings in the area that you are searching.

You can also check for links to our sources in the show notes at newsforinvestors.com.

If you like our podcasts, be sure to subscribe, and leave us a review! You'll also find a link to join our RealWealth network of investors for free in the show notes.

As as a member, you'll have access to the Investor Portal where you can view sample property pro formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

Thanks for listening. I'm Kathy Fettke.

00:06:04 End Transcript

Links:

1 - https://www.washingtonpost.com/realestate/competition-is-getting-nasty-rise-in-private-home-listings-benefits-brokerages-hurts-buyers-and-sellers/2021/07/07/4ad6a0d6-ca00-11eb-81b1-34796c7393af_story.html

2 - https://www.moving.com/tips/what-are-the-pros-cons-of-a-pocket-listing/

The Real Estate News Brief: New Inflation Worries, Sellers Boost Inventory, Ban on Buyer Love Letters Jul 21, 2021

Show notes

Audio Transcript:

00:00:00 Intro Music

[Speaker] Kathy Fettke: In this Real Estate News Brief for the week ending July 17th, 2021... what the Fed says about the June inflation report, why there's been a surge in listings, and where homebuyer love letters are now banned.

Hi, I'm Kathy Fettke and this is Real Estate News for Investors.

Economic News

We begin with economic news from this past week, and an unexpected bump in the consumer price index. The government reported a .9% increase in prices for June. According to MarketWatch, that's the largest monthly increase since 2008, mostly due to higher prices for used cars. But prices are also climbing for food, energy, clothing, plane tickets and hotels. The June bump brings the 12-month rate up to 5.4%. The core rate, which eliminates prices for food and energy, was also up .9%, but the 12-month rate is less. It currently stands at 4.5%. (1)

Fed Chief Jerome Powell told members of Congress that inflation has risen faster and higher than the central bank expected, but he still thinks it's a temporary situation. He told the House Financial Services panel that prices will probably remain elevated in the coming months before they moderate. He cited three reasons. They include "base effects" because we are comparing current readings to last year in the midst of the pandemic, supply chain issues, and production bottlenecks. (2) The Fed plans to keep interest rates where they are for the time being and continue with the monthly bond purchases.

The number of people collecting unemployment continues to dwindle. Initial jobless claims were down to 360,000 last week, which is a new pandemic low. And the total number of people collecting benefits from any program offered by state and federal governments is 13.8 million. (3)

Consumers are worried about rising prices and the job market. The University of Michigan's consumer sentiment index fell to a six-month low in July, from 85.5 to 80.8. That's not a horrible number, but it shows that consumer sentiment hasn't climbed back to pre-pandemic levels. (4)

That hasn't stopped consumers from shopping and dining at restaurants however. Retail sales were up .6% in June, which beat forecasts, and are now up 18% for the past year. That's better than they were before the pandemic. (5)

Mortgage Rates

Mortgage rates are down again this week. Freddie Mac says the average 30-year fixed-rate mortgage dropped 2 basis points week to 2.88%. The 15-year was also down 2 basis points and is now an average of 2.22%. The 30-year hit a recent peak of 3.18% in April. (6)

In other news making headlines...

More Homes Hit the Market

Sellers are finally making an appearance. According to Redfin, There was a jump in new listings last month. They were up 4% year-over-year in June, and 3% from June of 2019. Homeowners with plans to sell had been holding off during the pandemic. (7)

They were concerned about having people in their homes as well as being able to find a new one. CNBC reports that vaccines are giving them confidence about health concerns and an increase in inventory is encouraging them to go through with their plans.

Apartment Rents Surge Higher

The latest monthly rent report from Zumper shows that rents are rising across the country. It shows the median national rent for a one-bedroom apartment was up 4.9% in June to $1,315 a month. The median for a two-bedroom was $1,644. (8)

The report says: "Rents are on the rise in a major way. Nationally, rents jumped at a staggering rate, and the cities that experienced the biggest drops in rents during the pandemic are now starting to trend in the opposite direction."

Buyer Love Letters Banned in Oregon

A new state law in Oregon prohibits homebuyers from sending love letters to sellers. Buyers try to endear themselves to sellers with warm and fuzzy stories about how much they love the home along with information about themselves. They may sound harmless enough, but the Oregon law prevents real estate agents from delivering those letters to sellers.

The National Association of Realtors has been warning agents that they are putting themselves at risk by getting involved with love letters in any state. It said in a blog last year: "These letters can actually pose fair housing risks because they often contain personal information and reveal characteristics of the buyer, such as race, religion, or familial status."

NAR says that agents should refuse all love letters from buyers. Oregon is the first state to ban them. (9)

Most Desirable Dream Home Features

Outdoor space has risen to the top of a list of priorities for the American dream home. A Buildworld survey shows that 66.3% of the participants want a garden more than anything else. Second on the list is a garage, and third on the list is natural light. In step with the idea of minimalism, having lots of storage is 15th on the list. (10)

You can check for links to our sources in the show notes at newsforinvestors.com. You'll also find a link to join our RealWealth network of investors for free in the show notes.

As a member, you'll have access to the Investor Portal where you can view sample property pro formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

If you like our podcasts, be sure to subscribe, and leave us a review!

Thanks for listening. I'm Kathy Fettke.

Closing Music

00:05:49 End

Links:

1 - https://www.marketwatch.com/story/consumer-inflation-posts-biggest-increase-since-2008-cpi-shows-11626180086?mod=economy-politics

2 - https://www.marketwatch.com/story/inflation-will-moderate-powell-says-in-prepared-testimony-to-congress-11626265864?mod=economy-politics

3 - https://www.marketwatch.com/story/u-s-unemployment-claims-drop-to-new-pandemic-low-of-360-000-11626353365?mod=economy-politics

4 - https://www.marketwatch.com/story/u-s-consumer-sentiment-sentiment-falls-to-6-month-low-amid-record-inflation-concerns-11626446571?mod=economic-report

5 - https://www.marketwatch.com/story/big-tabs-at-bars-and-restaurants-drive-u-s-retail-sales-higher-in-june-as-americans-get-out-and-about-11626439961?mod=economic-report

6 - http://www.freddiemac.com/pmms/

7 - https://www.cnbc.com/2021/07/12/homebuyers-finally-get-a-break-as-new-listings-rise-and-mortgage-rates-drop.html?&qsearchterm=catching%20a%20break

8 - https://www.zumper.com/blog/category/rent-reports/

9 - https://magazine.realtor/daily-news/2021/07/09/oregon-bans-buyer-love-letters

10 - https://magazine.realtor/daily-news/2021/07/15/a-third-of-americans-say-their-dream-home-is-attainable

Is Now a Good Time to Sell Your Home? Jul 16, 2021

Show notes

Transcript:

[Intro music 00:00:00]

Kathy Fettke [Speaker]: It looks like the sellers are coming out of hiding. Redfin is reporting an increase in listings, and a new survey by Fannie Mae shows that more and more people feel that "now" is a good time to sell. (1) But there are also signs of a pullback among homebuyers.

Hi I'm Kathy Fettke and this is Real Estate News for Investors.

It's been a sellers' market throughout the pandemic, as buyers compete for a dwindling supply of existing homes. But now that the pandemic is easing and home prices have hit record highs, sellers are more motivated to put their homes up for sale.

New Listings Jumped in June

Redfin says new listings jumped 4% in June, compared to June of last year. That's the biggest increase since 2019, before the pandemic. But the total number of active listings is still well below levels they were at a year ago. CNBC reports they are off by 32%. But that's also the smallest year-over-year drop since February. (2)

A monthly Fannie Mae survey shows strong seller optimism. 77% of the participants said "now" is a great time to sell. Home prices have reached record highs, and sellers want to capture some of that appreciation. According to CoreLogic, prices were up 15.4% year-over-year in May. They are expected to continue rising, but not as fast. CoreLogic is predicting another 3.4% gain by May of next year.

Many homes also sell well above their listing prices as buyers make high offers and compete with other buyers. In June, 55% sold above the listing price compared to 27% in June of last year. But it's that kind of price growth that is also pushing some buyers out of the market. The same Fannie Mae survey shows that 64% think it's a bad time to buy.

CoreLogic CEO, Frank Martell says: "First-time buyers are hitting a wall in many places around the country as the pace of home-price rises outpace the benefits of lower borrowing costs. Younger and first-time buyers, including younger millennials, are faced with the challenge of having sufficient savings for a down payment, closing costs and cash reserves."

While sellers are revving their engines, some buyers are downshifting. The pullback is showing up in the pending sales report. Redfin says: "Pending sales posted their smallest year-over-year increase in almost a year, and fell twice as fast month-over-month as they did during this same time in 2009."

The Redfin Homebuyer Demand Index is based on requests for home tours and other agent services. It recently fell 1.2% week-over-week. There was also a similar drop in mortgage applications.

Redfin's Chief Economist Daryl Fairweather says: "Many buyers have backed away from the housing market and are waiting until more and better homes are listed." He says: "They don't have the same sense of urgency that they did at the beginning of the year."

Sellers Have the Upper Hand

But even with a pullback in demand, the experts say it's still a seller's market. According to Fannie Mae's chief economist, Doug Duncan, sellers will continue to have the upper hand. He says: "Despite the pessimism in home buying conditions, we expect demand for housing to persist at an elevated level through the rest of the year."

He attributes that to mortgage rates that are still hovering below 3%, along with consumer confidence about the job market and household income.

You'll find links in the show notes at newsforinvestors.com. Click here to join RealWealth now, it's free and only takes a minute!

If you like what you hear, subscribe to our show. And don't forget to give us a thumbs up or a stellar review on whatever podcast platform you are using.

Thanks for listening. I'm Kathy Fettke.

[Closing music]

[End 00:03:52]

Links:

1. https://www.redfin.com/news/housing-market-update-new-listings-pass-2019/

2. https://www.cnbc.com/2021/07/12/homebuyers-finally-get-a-break-as-new-listings-rise-and-mortgage-rates-drop.html?&qsearchterm=catching%20a%20break

The Real Estate News Brief: Lenders Report Slowdown, ARMs Gaining Popularity, and Top Metros for Movers Jul 14, 2021

Show notes

Transcript:

[Speaker] Kathy Fettke: In this Real Estate News Brief for the week ending July 10th, 2021... what lenders are saying about a mortgage slowdown, why ARMs are suddenly attractive, and which cities are attracting people who are relocating.

Hi, I'm Kathy Fettke and this is the Real Estate News for Investors.

Economic News

We begin with economic news from this past week. The latest unemployment report shows a slight rise in new claims, but the total number of claims continues to fall. As of June 19th, the number of people collecting benefits was 14.2 million. Economists expect that number to fall faster in September when extra unemployment benefits expire and people are forced to go back to work. (1)

And there should be plenty of jobs available. The Labor Department's latest report on job openings shows a record 9.2 million. That's exactly double the number of job openings from a low point during the pandemic, and the third month in a row that openings have set a record. (2)

In addition to people sitting on the sidelines, many workers are quitting as they seek better jobs. The data shows that 4 million people quit two months ago. Most of them want better paychecks. Many may also want new work scenarios that reflect some of the changes we've seen during the pandemic, such as the ability to work remotely.

Mortgage Rates

Mortgage rates have moved lower again this last week. Freddie Mac says the average 30-year fixed-rate mortgage was down 8 basis points to 2.9%. The 15-year dropped 6 points to 2.2%. The dips follow a drop in the U.S. Treasury yields. (3)

In other news making headlines...

Mortgage Applications Are Down

Lenders are seeing fewer home loan applications despite that drop in mortgage rates. The Mortgage Bankers Association says that applications for new loans were down 1% for the week, and 14% from last year. Refinance loans dropped 2% for the week, and are 8% lower than last year. (4)

The MBA's Joel Kan says: "Swift home price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher."

Adjustable Rate Loans

The adjustable-rate mortgage appears to be making a comeback, as a way for some borrowers to keep loan payments low. So-called ARMs became very unpopular during the housing crisis when home values tanked and loans readjusted to higher interest rates. The current surge in home prices has triggered new interest in getting a loan that starts off with lower payments. (5)

According to the Mortgage Bankers Association, applications for ARMs have gone up 12.5% year-over-year. The initial savings is currently about a half percent.

Realtor.com reports that the average rate for a 5-year hybrid adjustable-rate mortgage was 2.54% on July 1st, and 2.98% for a 30-year fixed-rate mortgage. Those loans typically readjust to a new interest rate after 5 or 10 years.

Lumber Price Drop Lags for Builders

Lumber prices have now dropped about 50% from a peak in early May, but those lower prices have not yet reached builders. (6) The National Association of Builders say there can be a "long lag time" for price reductions to work their way through the supply chain.

NAHB Economist David Logan says: "As the price declines began grabbing headlines, the price of lumber packages quoted to builders held at record highs." He attributes this lag to dealers who have inventory purchased for higher prices.

The lumber supply chain has several stages. It begins with the cutting of timber that is then sent to a sawmill. From there it goes to a wholesaler who distributes it to a retailer. The builder finally gets the product as an end user.

Prices for new-build homes have continued to rise. The NAHB says the median price was $374,400 in May. That's an 18% increase from May of last year.

Construction Worker Shortage

Home prices are also being driven higher by the construction worker shortage. The Associated Builders and Contractors group says the industry has only recovered about 80% of the 1 million skilled technicians that it lost during the pandemic. (7)

The association says the industry is short 430,000 for this year, and will need another 1 million trained construction workers over the next two years.

Metros Benefitting from Pandemic Relocations

There's a new report from Lending Tree on the top 50 metros attracting homebuyers who are relocating. The list shows the desirability of those cities. Many of them are also on our own list for single-family rentals.

I would like to share some of those cities. They include Jacksonville, Tampa, and Orlando, in Florida. Atlanta is on that list, along with Indianapolis, Charlotte, Dallas, Columbus, Houston, and Cincinnati. Those are among the top 25. There are plenty more along with details on how the migration patterns have increased from year-to-year. (8)

You'll find links in the show notes at newsforinvestors.com.

If you like what you hear, subscribe to our show. And don't forget to give us a thumbs up or a stellar review on whatever podcast platform you are using.

Thanks for listening. I'm Kathy Fettke.

Click here to join RealWealth now, it's free and only takes a minute!

Links:

1 - https://www.marketwatch.com/story/unemployment-claims-rise-slightly-to-373-000-in-early-july-11625748104?mod=home-page

2 - https://www.marketwatch.com/story/u-s-job-openings-hit-record-9-2-million-as-businesses-compete-for-limited-supply-of-workers-11625667240?mod=economy-politics

3 - http://www.freddiemac.com/pmms/

4 - https://magazine.realtor/daily-news/2021/07/08/mortgage-applications-drop-to-pre-pandemic-levels

5 - https://magazine.realtor/daily-news/2021/07/06/adjustable-rate-mortgages-stage-comeback-after-scrutiny

6 - https://magazine.realtor/daily-news/2021/07/08/plummeting-lumber-prices-little-help-to-builders

7 - https://www.cnn.com/2021/07/08/economy/construction-worker-shortage/index.html

8 - https://magazine.realtor/daily-news/2021/07/08/cities-that-benefitted-most-from-pandemic-relocations

Housing Market: Residential Construction is Limited by Worker Shortage Jul 12, 2021

Show notes

Transcript:

Kathy Fettke: The U.S. needs millions of homes to meet the current demand for housing, and is depending on builders who can't find enough workers to do the job. According to one source, the industry needs to hire 1.5 million more construction workers from now through the year 2023. So where have all the workers gone?

Hi I'm Kathy Fettke and this is Real Estate News for Investors.

The construction industry is in hyper-drive right now to satisfy a critical demand for new housing and for upgrades to existing homes. More people are working from home making "home" a much more important part of our lives. It's a perfect time for builders to expand their businesses but they are limited by the number of workers available.

Where Are All the Construction Workers?

Solar installer, Matthew Messer, is the owner of New York Solar Maintenance. And he says he's out in the field working seven days a week because business is booming and he can't get enough help. He told CNN: "The phone is ringing off the hook. I am expanding as quickly as I can, but right now that's governed by the amount of skilled technicians I can bring in." (1)

The Associated Builders and Contractors issued press release saying that construction companies need to hire 430,000 more workers in 2021 than they had in 2020. And almost one million more workers over the next two years. The analysis of data from the U.S. Bureau of Labor Statistics also shows that every $1 billion spent on construction spending generates an average of 5,700 construction jobs.

Three Growth Scenarios

ABC also used data from economic consulting firm, Markstein Advisors, which shows a construction industry workforce of almost 8 million last year. (2) And with an estimated $1.45 trillion in construction spending in 2021, the firm determined that another 430,000 workers are needed. The analysis included three growth scenarios, and the one with the highest growth rate calls for many more workers.

The first is a "base case" scenario and is thought to be the most likely to occur. That is based on $1.43 trillion in construction spending last year, a 1.3% growth rate for 2021, 3.5% in 2022, and 4.5% in 2023. That's an average of 3.1% per year. When it's applied to the size of the workforce in 2020, the result is an employment demand for 430,000 more workers in 2021, and a total of 1.28 million for all three years.

In the second scenario, ABC considered a slower growth rate of 1.3% per year. That resulted in a three-year demand for 816,000 more workers. And in the third scenario, ABC calculated employment demand for a high growth rate scenario. The average growth was 8.1% which resulted in the need for almost 2 million more workers during that three-year time span.

Some of the factors that ABC considered in this analysis include higher costs for building materials and labor, along with several other variables. They include:

A shift toward high-end residential construction which costs more but doesn't require that many more worker hours
The adoption of labor-saving technology due to the worker shortage
More efficient scheduling of workers and better logistics for building materials
Increased use of prefabricated pieces that reduce the amount of labor that's needed
And, the folding of smaller, less efficient construction companies.

Employers Offer Higher Wages

The analysis was also based on 2020 wages, which are going up in an attempt to attract workers. In the CNN article, Messer says he offered $18 to $22 an hour but no one applied for those jobs. He boosted that to $23 an hour, and still -- nothing. He says: "I increased it to $25 and they're starting to trickle in right now. It was a dramatic increase, but in order to grow the business, I need technicians."

Although the pandemic had an impact on the labor shortage within the construction industry, the housing crisis in 2008 and the recession that followed had much more of an impact. According to the Journal of Light Construction and the U.S. Census Bureau, more than 60% of the workers that were displaced during that crisis, also left the industry for good. That helped create the labor shortage, combined with what the Bureau says is a "persistent drop in the hiring of younger workers into construction jobs." (3)

Attracting Young People to the Industry

One big change in school curriculum that works against the industry is the lack of "shop classes" that were once so popular. As CNN points out, they were part of the normal class offerings in high schools across the country. Now they are "few and far between."

ABC is working on boosting interest in a construction career. Bellman says: "We want to go out to every area where we can attract top talent. Once we get them into the industry, we're educating and upskilling." Bellman says the idea is to increase retention.

ABC says the organization and its contractor members invest a total of $1.5 billion a year in workforce development initiatives that include job training. CEO Michael Bellman said in a statement: "Now is the time to consider a career in construction, a vocation that offers competitive wages and ample opportunities to both begin and advance in an industry that builds the places where we work, play, worship, learn and heal."

But there's a high turnover rate in the industry. The Bureau of Labor Statistics says the average monthly turnover in the last decade has been 5.2%. That's quite a bit higher than the overall average of 3.6%.

With too few humans to fill the shoes of workers, the industry is now turning to technology. That's opening up positions for tech workers, who may ultimately fill the need of the industry as it tries to keep up with the housing boom. In the meantime, competition for workers, and for the hiring of contractors will continue to have an impact on home construction.

Check for links in the show notes at NewsForInvestors.com.

Click here to join RealWealth now, it's free and only takes a minute!

Links:

1 - https://www.cnn.com/2021/07/08/economy/construction-worker-shortage/index.html

2 - https://www.abc.org/News-Media/News-Releases/entryid/18636/abc-the-construction-industry-needs-to-hire-an-additional-430-000-craft-professionals-in-2021

3 - https://www.jlconline.com/article/constructions-exodus-of-labor_c

U.S. Economy: Housing Market Is Booming but Challenges Continue Jul 10, 2021

Show notes

Audio Transcript:

Kathy Fettke: The housing market has been booming, but not for everyone. Many Americans are struggling financially as the economy recovers from the pandemic. High home prices are impacting both homebuyers and renters, and we could see a wave of foreclosures and evictions when pandemic moratoriums expire. Those are just a few of the challenges mentioned in "The State of the Nation's Housing 2021." It's put together by the Joint Center for Housing Studies of Harvard University.

Hi I'm Kathy Fettke and this is the Real Estate News for Investors.

Home sales have been soaring in the past year. Many Americans have been on a home-buying binge as the country shifts to a post-COVID reality. Existing home sales were up 20% year-over-year from September of last year through February, and new home sales were even higher. They rose 30% year-over-year from June of last year through February.

Home Sales and Prices Are Soaring

Existing homes have been hobbled by a historically tight supply that grew worse during the pandemic because sellers didn't want to list their homes. The Harvard study shows that the existing home inventory shrank 30% on average from June of 2020 to February of 2021, to just 1.05 million homes. That drove the months of supply down from a low 3.9% on average in 2019 to 3.1 months last year. It even dipped below 2 months briefly, before the end of last year. And 6 months is considered normal.

That kind of demand for homes has pushed prices consistently higher. The S&P Case Shiller Home Price Index shows that home prices were up 13.2% year-over-year in March. That's up from 4.2% in the first quarter of last year, and 3.5% in 2019. Some people have worried about a price bubble, similar to what happened before the Great Recession, but conditions are different now than they were then. It's not as easy to get a loan now, so homebuyers are better qualified with more equity in their homes. Interest rates are also lower, giving homebuyers more purchasing power, and a greater desire to "buy now."

Builders have been producing more homes, to help meet demand. Single-family housing starts topped a seasonally adjusted annual rate of 1.0 million last August. That rate of production has continued since then. If it continues through August of this year, it will be the first year that single-family starts have been above the one million level since 2007.

Homeownership Rises, But Not for All

The report says that homeownership rates remain "on an upward trajectory" but not for everyone, because of rapidly rising home prices. For many, home prices are rising much faster than their salaries. The price-to-income ratio last year was 4.4, nationally. Twenty years ago, it was less than 3 in a majority of the 100 largest U.S. metros, and higher than 5 in just a few. Last year, it was less than 3 in just 16 of those big metros and higher than 5 in 23 of them.

Many homeowners and renters are also facing the risk of foreclosure or eviction as pandemic moratoriums are lifted. The number of homeowners in forbearance programs has dropped considerably but the report says that the future is uncertain for 2.3 million borrowers. They are still in forbearance and have not yet resumed their mortgage payments, at the time of this report. It isn't just the job losses, but the loss of loved ones who helped maintain the family and pay the bills.

Renters Impacted by the Pandemic

The situation is similar for many renters. Millions of renters lost their jobs at the beginning of the pandemic. The Household Pulse Survey shows 51% of renter households had lost income because of the pandemic by March of this year, but that situation is very different from region to region.

The report says the Southeast has the highest number of renters who owe their landlords, with Mississippi topping that list at 27%. Delaware and Louisiana follow at 25%. The areas with the lowest number of renters who need to "catch up" are farther west in the Midwest and Mountain regions. The report mentions Idaho, North Dakota, Montana, and Utah. Just 12% were behind on their payments early this year.

Near-Term Housing Outlook

The report offers a near term outlook at opposite ends of the spectrum for many American households. There are those with good-quality housing and secure employment along with millions more who are struggling. It expects that dichotomy to continue despite the economic recovery. It also expects demand for homeownership to remain high, especially among younger buyers, and it says that inventory issues could ease up as more sellers come on the market. That could put a damper on home price growth, but builders also need to keep pumping new homes into the market to keep prices affordable.

It expects some of the housing market changes that happened during the pandemic to be temporary, including the drop in demand for high-end urban rentals. But the demand for suburban homes among buyers and renters may be here to stay, especially for those who continue to work remotely. You can see vacancy rates shift higher for urban rentals and lower for rentals in the suburbs, early last year. That has reversed somewhat as the pandemic dies down, but researchers expect suburban demand to continue.

Longer-Term Impacts

Longer term impacts on the housing market include a big drop in population growth. Researchers cite a combination of factors including a falling birth rate, a big drop in immigration, and a surge in mortality, thanks to the pandemic. The report says U.S. population growth is the slowest it's been in 100 years.

That could help resolve the housing gap if there are fewer people competing for homes, but it could also have a negative impact on the economy as a whole. Researchers suggest the need for policymakers to "reinvigorate population growth" by increasing immigration, providing childcare for working families, and improving economic growth by addressing the income and wealth gap.

The report dives much deeper into current housing conditions. Check the show notes for links to the report at NewsForInvestors.com.

Thanks for listening to the Real Estate News for Investors. If you like what you hear, please be sure you subscribe. And don't forget to give us a thumbs up or a stellar review on whatever podcast platform you are using.

Thanks for listening. I'm Kathy Fettke.

Click here to join RealWealth now, it's free and only takes a minute!

Links:

https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf

The Real Estate News Brief - SCOTUS Eviction Ban Ruling, Lumber Price Turnaround, and a Credit Card that Helps You Buy a Home Jul 07, 2021

Show notes

Transcript:

In this Real Estate News Brief for the week ending on the 4th of July, 2021... what the U.S. Supreme Court decided about the CDC eviction moratorium, the surprising drop in price for lumber, and a new credit card that helps you get money for the down payment.

Hi, I'm Kathy Fettke and this is Real Estate News for Investors.

Economic News

We begin with economic news from this past week. The latest unemployment report shows that fewer people are applying for benefits, probably because the COVID-era benefits are being phased out. The Labor Department says that 364,000 people applied for benefits. That's 50,000 less than the week before. Initial claims are now below the half million mark. The total number of people collecting benefits from all eight state and federal programs is 14.7 million, which is another pandemic low. (1)

There are plenty of job openings for people looking for work. Companies pumped 850,000 new positions into the market in June. That's the biggest hiring increase in 10 months, according to MarketWatch, but economists say employment levels are still a long way from pre-pandemic levels. Most of these new positions are for jobs that correspond to the reopening, like those for restaurants, hotels, and stores. (2)

The official unemployment rate is at 5.9%. Economists say the true rate is probably two or three percentage points higher than that. The percentage of people over 16 who are able to work is 61.6%. That's known as the labor participation rate. It's the same now as it was in October.

Home prices are rising at an eye-popping rate. The S&P Case-Schiller nationwide index rose from 13.3% year-over-year in May to 14.6% in April. The 10-city index shows a bigger jump, from 12.9% to 14.4%. The cities with the biggest gains were Phoenix, San Diego, and Seattle. A representative for the Index says the gain for the nationwide index is the highest reading in more than 30 years. (3)

Homebuyers were busy in May. The National Association of Realtors reported an unexpected 8% increase in pending home sales, compared to April. CNBC says that economists expected a 1% decline, but instead, contract signings rose to levels we haven't seen since 2005. (4) NAR's chief economist, Lawrence Yun, said in a statement: "May's strong increase in transactions -- following April's decline, as well as a sudden erosion in home affordability -- was indeed a surprise." (5)

Construction spending was lower in May, overall, due to non-residential projects, but spending was higher among home builders. The Commerce Department says that spending for residential construction was up .2%, and is up a total of 28.2% year-over-year. Not surprisingly, spending for office construction is down substantially. The government says it's down 23.3% for the past year. (6)

Consumer confidence is flying high. The Conference Board says it jumped up from 120 in May to 127.3 in June. That's the highest level of confidence since the COVID-19 ravaged the country. (7) Economists say it's because the pandemic is dying down, government stimulus, and a recovering job market. But they say, many consumers are still worried about the risk of inflation.

Mortgage Rates

Mortgage rates dipped back down this last week. Freddie Mac says the average 30-year fixed-rate mortgage dropped 4 basis points to 2.98%. It had risen above the 3% level previously. The 15-year also dropped 8 basis points to 2.26%. (8)

In other news making headlines...

SCOTUS Upholds Eviction Ban

The U.S. Supreme Court ruled against a request to block the CDC's eviction ban. In a 5 to 4 decision, Chief Justice Kavanaugh and Justice Brett Kavanaugh sided with their liberal counterparts to keep the moratorium in place. Kavanaugh wrote in the decision: "Because the CDC plans to end the moratorium in only a few weeks, on July 31st, and because those few weeks will allow for additional and more orderly distribution of the congressionally appropriated rental assistance funds, I vote at this time to deny the application to vacate the District Court's stay of its order." (9)

The decision was a disappointment to real estate agents in Georgia and Alabama, who were the plaintiffs, and the National Association of Realtors who reportedly funded their legal challenge. The plaintiffs had argued that the CDC moratorium "shifted the pandemic's financial burdens from the nation's 30 to 40 million renters to its 10 to 11 million landlords. NAR says that landlords have been losing more than $13 billion a month during the moratorium.

Lumber Prices Continue to Fall

Lumber prices are coming down quickly after a frightening peak in early May. They had risen as high as a jaw-dropping $1,700 for a thousand board feet, but have been coming down since then.

The latest report shows that lumber futures tumbled 40% in June. That's the biggest monthly drop on record. And that prices are now down to about $700 for a thousand board feet. That's still more than double what they were a year ago, but the big drop in price is great news for builders, homebuyers and investors. (10) (11)

Credit Card with Down Payment Reward Points

First-time buyers have a new way to save up for a down payment. A real estate start-up called Bilt Technologies is offering a credit card with reward points that can be used to pay bills like the rent, or a down payment on a home.

If property owners accept credit cards for rent payments, then the money paid for rent would go toward those points. The Wall Street Journal says a $1,500 a month rent payment for 10 years would give you enough points for a $6,000 down payment. (12)

That's it for today. Check the show notes for links at NewsForInvestors.com.

I'm Kathy Fettke and thanks for listening to Real Estate News for Investors. If you like what you hear, please be sure you are a subscriber. And don't forget to give us a thumbs up or a stellar review on whatever platform you are using.

Click here to join RealWealth now, it's free and only takes a minute!

Links:

1 - https://www.marketwatch.com/story/u-s-unemployment-claims-sink-51-000-to-new-pandemic-low-of-364-000-11625143912?mod=economy-politics

2 - https://www.marketwatch.com/story/u-s-gains-850-000-new-jobs-in-june-in-sign-of-strength-for-the-economy-11625230019?mod=economic-report

3 - https://www.cnbc.com/2021/06/29/home-price-gains-in-april-truly-extraordinary-sp-case-shiller-says.html

4 - https://www.cnbc.com/2021/06/30/may-home-sales-rebound-to-highest-level-since-2005.html?__source=realestate%7Cnews%7C&par=realestate

5 - https://www.marketwatch.com/story/pending-home-sales-surge-higher-but-economists-warn-that-the-housing-market-could-soon-hit-bottom-11625062462?mod=economic-report

6 - https://www.marketwatch.com/story/construction-spending-falters-in-may-as-nonresidential-sector-remains-weak-11625149059?mod=economic-report

7 - https://www.marketwatch.com/story/consumer-confidence-leaps-in-june-to-pandemic-high-as-coronavirus-fades-away-11624976332?mod=economy-politics

8 - http://www.freddiemac.com/pmms/

9 - https://www.housingwire.com/articles/supreme-court-upholds-cdc-eviction-ban/

10 - https://www.cnbc.com/2021/06/30/lumber-prices-dive-more-than-40percent-in-june-biggest-monthly-drop-on-record.html