Eviction Moratorium Ends and House Sizes Grow: The Five
As the seasons begin to change, so does the ever-dynamic real estate market. In a major ruling, the Supreme Court has struck down the extension of the eviction moratorium, with many predicting a major increase in foreclosures and homelessness occurring as a result. Mortgage rates continue to remain at historic lows while household sizes continue to increase as a result of the pandemic. Lastly, research shows that mindset plays a major role in preventing or creating burnout. All this and more on this September edition of The Five.
In a monumental ruling last week, the Supreme Court has struck down the CDC’s extension of the federal eviction moratorium. For months, many have predicted that a major wave of foreclosures would strike as a result of the moratorium ending. We will have to wait and see what will happen as an estimated 2.5 to 3.5 million American households are behind on their rent. To exacerbate matters, the emergency relief funds that were given to local governments have barely reached individuals due to inefficiencies in distributing these funds. Goldman Sachs has estimated that around 750,000 households are at risk of being evicted in the near future.
Industry Groups React to SCOTUS Eviction Ruling (HousingWire)
With the end of the eviction moratorium, two opposing sides on the matter have arisen. Groups including landlords and real estate associations have fought against the extension of the moratorium, citing the economic repercussions on landlords, many of which are mom and pop operations that have been unable to stay afloat without consistent rent payments from all tenants. On the other side, the Biden administration and others have cited the negative repercussions of not having protections in place for those who have been hit the hardest by COVID-19. Many fear that homelessness will increase along with coronavirus cases for the most vulnerable.
For business professionals, particularly entrepreneurs, it can often feel like you never have a moment to breathe. There is a seemingly endless list of tasks to complete at all times. Burnout can occur as a result of prolonged feelings of being overwhelmed. Psychology research has shown that one of the best methods of preventing burnout is via a growth mindset. Feeling like you are losing hope in regards to your prospects of achieving your goals is likely a result of having adopted a fixed mindset.
On the other hand, those with a growth mindset tend to view roadblocks and other obstacles as temporary setbacks. By putting in extra effort, they can turn the tide. It also helps you focus less on the present moment and more on the future and the path needed to get there. A belief in progress is a core tenet of a growth mindset. It’s surprising how much your outlook can impact your success. Just like any other pursuit, life is truly what you make it. Mindset can make the difference between burnout and progress.
The average size of an American household has been a rather dynamic statistic over the past few decades. Average household size consistently increased from 2009 to 2015 and then declined until 2020. The pandemic brought about a significant shift leading to growing household sizes. In the second quarter of 2021, the median size grew to 2,297 square feet. As more people continue to use their homes for more purposes, including working remotely, the need for more space has been reflected in these figures.
Mortgage Rates Barely Budge, Averaging 2.87% (REALTOR Magazine)
For the ninth consecutive week, mortgage rates have remained under 3%. As the tug of war between the economic recovery and rising COVID-19 cases continues, rates remain close to historically low figures. While a deep shortage of inventory continues to plague potential homebuyers, there could be reason for optimism as there was an increase in the number of listings on the market in July compared to June.
We hope you enjoyed perusing these articles and were able to increase your real estate IQ. We’ll catch you back here next month for the first fall edition of The Five in 2021.
Happy Labor Day, and as always, happy, and profitable, investing.