Thursday, February 18, 2021

FHFA EXTENDS FORBEARANCE, FORECLOSURE AND EVICTION MORATORIUMS









At-risk homeowners can now postpone mortgage payments (via forbearance) for 15 months. Foreclosure and REO-related eviction bans run until March 31.


 


The Federal Housing Finance Agency (FHFA) announced that mortgages held by Fannie Mae and Freddie Mac have extended their moratoriums on single-family foreclosures and real estate owned (REO) evictions until March 31, 2021.













The foreclosure moratorium applies to single-family mortgages and only those backed by Fannie and Freddie. The REO eviction moratorium applies to properties they’ve acquired through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Feb. 28, 2021.



Forbearance


Mortgage borrowers with a loan backed by Fannie Mae or Freddie Mac may also be eligible for an additional forbearance extension of up to three months.


Under forbearance, homeowners financially harmed by the pandemic can postpone payments that can then be paid at the time the home is sold, refinanced or at mortgage maturity. Foreclosures aren’t expected to pick up significantly until forbearance ends, and the government hopes most homeowners in forbearance will be able to return to work before then.


Eligibility for the forbearance extension is limited to borrowers who are already on a COVID-19 forbearance plan as of Feb. 28, 2021, and FHFA says other limits may apply.


With the just announced extension, the COVID-19 Payment Deferral allows borrowers with a Fannie or Freddie-backed mortgage to cover up to 15 months of missed payments.


FHFA projects that the program will cost Fannie and Freddie $1.5 to $2 billion for the COVID-19 foreclosure moratorium and its extension.


 


Source: Florida Realtors®








Wednesday, February 17, 2021

3 Predictions for the 2021 Rental Market









Many renters have transitioned into homeownership during the pandemic, and rental demand and prices are dropping in major cities like New York and San Francisco, ApartmentList reports. “The pandemic is likely to change the expectations and behaviors of renters for an extended period, as people grew accustomed to conducting virtual real estate tours and finalizing leases and other financial transactions at home so they could easily social distance,” ApartmentList notes in a new report that looks at rental trends heading into 2021. Among the trends the online rental marketplace expects to dominate in the new year:


Rental prices to flatten for first half of year. Prices for apartments will likely stabilize during the first half of 2021, reflecting the still-high number of Americans who have lost work due to business shutdowns because of the pandemic. “Overall, multifamily markets have remained tight from an occupancy perspective, even as rent growth has been weak to negative as operators focus on renewals,” Brad Dillman, chief economist at multifamily investment and management firm Cortland, told ApartmentList. “As a result of this resiliency, we expect rent pressures to rebound in the second half of next year. This rebound appears sustainable given the relative strength of the employment recovery as it, in turn, is likely to slow.” Rental prices likely will be weakest in dense urban areas, while suburban sunbelt areas likely will see small increases in rents.


Affordable housing demand will grow. “Given the undersupply of housing, estimated by ourselves and others, it is possible the country will see a renewed focus on housing affordability narratives as rent growth pressures resume next year,” Dillman told ApartmentList. Also, new construction is facing delays. Evictions likely will grow in the first and second quarter of next year as the national moratorium, which Congress is likely to extend through January, expires. Demand for affordable housing will likely grow as more people look for one-bedroom apartments in suburban areas, predicts Freddie Zamani, CEO of EcoSmart Builders, a construction company.


Remote work influences addresses. As remote work grows more commonplace, Americans may be more enticed to move. “We don’t anticipate job seekers placing as much emphasis on location as it relates to their commute as in years past,” Dillman says. But as cities may lose residents, rental prices may fall sharply as a result. Americans will “slowly but surely” be attracted to city life once again as prices moderate, the report notes.











Source: “6 Rental Market Trends to Expect in 2021,” ApartmentList (Dec. 16, 2020)





Tuesday, February 16, 2021

Happy Mardi Gras!




HAPPY MARDI GRAS & FAT TUESDAY


The last day of Carnival and the day before for Ash Wednesday, Fat Tuesday (Happy Mardi Gras) is the intertwining of a period of festivals and feasts that lead to a time of fasting and reflection. Also known as Shrove Tuesday and Mardi Gras, this enduring celebration has many traditions and deep roots around the world.


Mardi Gras (French for Fat Tuesday) dates back to an ancient Roman festival honoring the deities Lupercalia and Saturnalia which took place in mid-February. When Christians arrived in Rome, they incorporated the festival into Lenten preparations.


For centuries, this solemn feast prepared Christians for the season of Lent and used up valuable meat and supplies they would be abstaining from in the days to come. Traditions surrounding the day have changed through the ages. Through time and culture, the practices of Lent and Carnival, Mardi Gras, and Shrove Tuesday have varied and become incorporated into regional customs.


In the United Kingdom, Shrove Tuesday is also known as Pancake Day. Pancakes are the perfect menu item when the future includes abstaining from fats, eggs, and sweets!  In Russia, they celebrate the entire week during Shrovetide as Pancake Week.


Carnival & Mardi Gras


While the French didn’t originate the medieval feast, they did put their stamp on it. From parades to beignets and colorful masks, the last day of Carnival is full of elaborate costumes and lavish food sure to hold the revelers over through a long fast. During the 16th century, their ancestors celebrated Boeuf Gras (fatted calf) which included a tradition of parading a bull decorated with flowers through the city. The decorated animal is followed through the streets by a retinue of colorfully dressed attendants and bands playing unusual instruments. There was even a Boeuf Gras Society in Mobile, Alabama at one time.  (See history below for more information.)


New Orleans holds the crown for Carnival and Mardi Gras celebrations in the United States.  While the city is filled with French flavor and style, its culture is an eclectic infusion of many cultures. Colorful King Cake and thick, savory muffuletta sandwiches only suggest the indulgence possible on Fat Tuesday. Regional specialties like Etouffee, Po’boys, and jambalaya all add to the atmosphere of the day.


And while we satisfy our cravings, let’s not forget our beverages. Signature creations from New Orleans hit the spot. Be sure to try the Sazerac made with absinthe or the citrus cocktail Arnaud’s Special. For a smooth drink with some punch mix up a Vieux Carré made with whiskey, cognac, and sweet vermouth. But you don’t have to have a cocktail to enjoy the feast! Fat Tuesday has plenty of beverages full of refreshing flavor. Coffees, sodas, and shakes of every flavor can be found.


HOW TO OBSERVE #FatTuesday


Join in festivals around the country or have your own Fat Tuesday feast! Share your favorite traditions by using #FatTuesday, #MardiGras, #ShroveTuesday


Find your Fat Tuesday deals here.


FAT TUESDAY HISTORY


The roots of the celebration have been woven together for centuries from medieval spring festivals and feasts that were based on the Christian calendar.  Fat Tuesday is celebrated around the world in its various forms all of which harken back to these roots of spring festivals and religious fasting in preparation for the Holy day of Easter.


Credit for bringing Mardi Gras to America goes to French explorers Pierre Le Moyne Sieur d’Iberville and Jean Baptiste Le Moyne Sieur de Bienville. In 1699, d’Iberville reached the mouth of the river on Shrove Tuesday near what is now Louisiana and named it Pointe du Mardi Gras.


Thanks to their establishment of Fort Louis de la Mobile, modern-day Mobile, Alabama lays claim to the first Mardi Gras celebration on American soil in 1703.


When de Bienville established Nouvelle Orleans in 1788, Mardi Gras celebrations reportedly began immediately. In 1875, Louisiana declared Fat Tuesday an official holiday.



Monday, February 15, 2021

PRESIDENTS DAY 2021




On the third Monday in February, the United States celebrates the federal holiday known as Presidents Day. The day takes place during the birth month of the country’s two most prominent presidents, George Washington and Abraham Lincoln. While the day once only honored President George Washington on his birthday, February 22nd, the day now never lands on a single president’s birthday.


Across the country, most Americans know the day as Presidents Day. More and more of the population celebrates the day to honor all of the past United States Presidents who have served the country. Throughout the country, organizations and communities celebrate the day with public ceremonies.


HOW TO OBSERVE #PresidentsDay


Some businesses close, including banks and federal buildings. Celebrate your favorite U.S. president. Here are some ways to participate:







      • Watch a documentary about the POTUS. For example, The Presidents by the History Channel.

      • See if you can name all the presidents in order.






 


Challenge yourself to some presidential trivia:







      1. Who are the three presidents who served in 1841?

      2. Forty years later, this same phenomenon occurred again in 1881. Name the three presidents who served that year.

      3. Name the three presidents who died on July 4th.

      4. Who were the four presidents who were assassinated while in office?






 


Use #PresidentsDay to post on social media.


PRESIDENTS DAY HISTORY


The origin of Presidents Day lay in the 1880s when the birthday of George Washington was celebrated as a federal holiday. In 1968, Congress passed the Uniform Monday Holiday Bill. The bill moved several federal holidays to Mondays creating three-day weekends. During the debate on the bill, one proposal suggested George Washington’s birthday be renamed Presidents Day to honor the birthdays of both George Washington and Abraham Lincoln. Washington’s birthday is February 22nd and Lincoln’s birthday is February 12th. Although Abraham Lincoln’s birthday was celebrated in many states, it was never an official federal holiday. Following much discussion, Congress rejected the name change.


Despite the rejection, soon after the bill went into effect in 1971, and the observance of Washington’s birthday shifted to the third Monday in February, gradually Presidents Day became the commonly accepted name. Over time, the observance came to be known to many as a day to honor both Washington and Lincoln. However, today another shift has occurred and many see the day as a celebration of all the U.S. Presidents.


 



Answers







      1. Martin Van Buren, William Henry Harrison, John Tyler



      2. Rutherford B. Hayes, James A. Garfield, and Chester A. Arthur.



      3. John Adams, James Monroe, Thomas Jefferson.



      4. Abraham Lincoln, James A. Garfield, William McKinley, John F. Kennedy








Friday, February 12, 2021

Wall Color Preferences Shift Toward a Brighter Future









The COVID-19 pandemic has nudged homeowners to lighten the mood set by the color in their spaces. While gray has been dominant inside homes in recent years, it may now feel too gloomy, a new study says.


Earthy and warmer neutral tones are replacing grays as the most popular shades, according to 54% of 68 design trendsetters recently surveyed by Fixr, a home renovation resource. Sixty-three percent of designers said that whites and creams are the shades to pick for those selling their homes in 2021. Overall, 81% of designers believe that quarantining has strongly affected homeowners’ color choices.


 






Chart shows preferred interior colors



Fixr.com



 






Chart shows preferred interior palettes



Fixr.com



 


Designers believe that Benjamin Moore’s Aegean Teal and Sherwin Williams’ Urbane Bronze will be the most used “colors of the year” by homeowners this year. Blue also has become a popular choice for personal spaces and for sending soothing vibes inside a home, the survey finds.


Also, white has become the dominant choice for exteriors. White is expected to be the leading choice for exterior colors to sell a house in 2021, according to Fixr’s report.



Some other findings from Fixr’s color trends report are:


Light-colored furnishings: Light natural tones, and light colors in general, received the most nods from designers for furnishings. It marks a move away from the darker brown and dark gray furniture to soft natural tones. “Light and natural tones on the furniture would coordinate well with the natural and neutral colors for the walls, also making the ideal backdrops for some fun, bold colors added by accent pillows or art,” the report notes.


Adding pops of color: Sixty-five percent of designers say that textured walls and wallpapers likely will lead the way for accent walls. Textiles—pillows and bed linen—can be a popular way to incorporate newer colors into a home.


 






Chart shows ways of incorporating new colors



Fixr.com







Chart shows preferred accent walls



Fixr.com



Most popular colors by spaces: Room by room, the following hues proved the most popular:



  • Home office: Off-white or navy blue

  • Kitchens: natural and earth tones or shades of green

  • Bedrooms: Blue (dominant choice)












Source: “Paint & Color Trends 2021,” FixR (Feb. 4, 2021)





Thursday, February 11, 2021

Shhhh! When a Home Is Too Loud




Too Loud – With many people working or studying remotely, these strategies may help cut down the noise.


The ability to work from home during the pandemic has been a blessing for many people, but it’s also made some acutely aware of the absence of one element helpful for productivity: quiet. Many have taken to barricading themselves in closets or hiding in their cars to insulate themselves from chatty household members or noisy street sounds. Echo-prone open floor plans have exacerbated the problem as family members concurrently try to do their jobs or attend remote school.


Enter acoustic consultants, armed with sound- proof design techniques and technology to bring some peace and quiet to home environments. Real estate pros can benefit from learning about these enhancements, which can be a valuable amenity for resale, especially for a home on a busy street.


“The pandemic has forced people to look at their home’s acoustics very differently,” says Bonnie Schnitta, founder and CEO of SoundSense, an acoustic consulting company based in Wainscott, N.Y.


Since the start of the pandemic, Schnitta’s firm has been fielding more calls from real estate professionals and homeowners about noisy plumbing, loud traffic, and household sounds amplified by open floor plans. During site visits, they’ll calculate precisely how sound reverberates in a space and offer a range of solutions, such as adding sound-absorbing fabric or foam behind wall hangings or underneath rugs. While these fixes aren’t cheap—consultation fees start at $900—many find the results are worth it.


Real estate professionals are getting help for listings with challenging acoustics. For one hard-to-sell home on a noisy street, Schnitta suggested adding a water feature in the front yard swimming pool, which, combined with a barrier, masked the road noise. The home sold two weeks later. “You can rarely completely erase road noise, but there are ways you can mitigate it,” she says.


Noise can impact resale. A 2017 realtor.com® study showed that sellers of homes within a 2-mile radius of an airport tended to see discounted prices of 13.2% compared to similar homes elsewhere in the same ZIP code. Sellers near train tracks saw average discounts of 12.3%, followed by 11.3% for nearby noisy highways.


The luxury Mozaic at Union Station Apartments in downtown Los Angeles addressed street noise issues by teaming with Veneklasen Associates, an acoustics firm, to work on soundproofing. Because 90% of outside noise entering an apartment comes through windows, behind the existing double-pane windows, they installed secondary, noise-mitigating windows that dampen sound vibrations and prevent sound leaks using recording studio-style soundproofing technology.


Window add-ons from Soundproof Windows Inc. cost $790 to $1,070 apiece, while a sliding glass door insert sells for about $1,600.


Noise reduction can be as simple as adding a $50 door seal or as complex as spending $10,000 or more for full-home soundproofing. Here’s a range of recommendations from acoustic consultants:



  • Cover hard surfaces. Hard, highly reflective surfaces are among the worst sound offenders. Use softer materials, such as area rugs with a sound-absorbing pad underneath and fabric-covered furniture, suggests Audimute, an acoustic design consultation firm.

  • Reduce echoes in open spaces. In open floor plans, sound can bounce everywhere. SoundSense and Audimute offer fabric-covered panels to add onto walls for sound absorption. Or try bookcases—even just half-full—against walls to help absorb sounds. Artwork can also be used as a sound barrier. SoundSense makes a Paradise Foam product, which can be tucked behind canvased art to mitigate noise.

  • Seal doors and windows. Soundproofing companies offer acoustic door seal kits that fit snugly around doors or window edges to reduce sound coming through cracks.

  • Add sound-absorbing shades or drapes. Roman shades, using heavy fabric, can help reduce noise, as can cellular shades and plantation shutters. Heavy drapes and curtains—think suede or velvet—are also effective at absorbing outside noise.

  • Go green. In addition to improving air quality, houseplants can help reduce noise. (They’re most beneficial on hard-surface floors.) Consider a tall, potted Norfolk pine in room corners, Schnitta says. Sound will bounce from the wall onto the foliage instead of throughout the room.


“When [buyers] walk into a home and hear an echo, it can be a turnoff,” Schnitta says. In a listing, “there are several inexpensive things you can do: Put in an area rug with a specialized pad. Put a plant in the corner, even if it’s artificial. Add a bookcase. All of this can make a big difference when it comes to sound.”


Too Loud: How Noisy Is That Listing?


In 2020, realtor.com® began displaying noise levels near listings to help house hunters before a visit. The tool takes into account traffic, airports, and local sources, such as from restaurants, gas stations, sports stadiums, schools, and more. Noise levels are rated as high, medium, or low for the listed property, while a heat map displays noise levels in the immediate area. Also, the U.S. Bureau of Transportation Statistics offers a National Transportation Noise Map to learn about noise pollution in an area or via an address search. It gauges noise from nearby interstate highways and airports.


 


Link



Wednesday, February 10, 2021

House Affordability - 2 IN 3 BUYERS SURPRISED BY HOW MUCH HOUSE THEY CAN AFFORD





Study: 47% of first-time buyers found that their budget allowed them to afford a larger house than they thought they could afford – but 21% had to lower expectations.


 


For first-time homebuyers looking to buy in 2021, a new survey conducted by HarrisX on behalf of realtor.com indicates a critical starting point for first-time buyers is getting their finances in order. Almost half (47%) of 2020 first-time buyers say they turned to their finances before they did anything else.


More than two out of three (68%) of the first-time buyers who checked their finances said they were surprised at the amount of house they could afford – 47% were surprised because their budget was larger than they thought, and 21% were surprised because it was less.


“The dramatic decline of mortgage rates in 2020 was a pleasant surprise for many buyers,” says realtor.com Senior Economist George Ratiu. “For first-time buyers, especially, the drop in the 30-year mortgage rate from 3.65% in March 2020 to a record-low of 2.65% in January has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”


To get what they wanted in their first home, many recent buyers had to compromise: 21% expanded their search into less expensive neighborhoods, 20% had to increase their budget, and 18% eliminated some wish-list features – namely a garage, large backyard, finished basement or pool – to stay in budget.


Even with shortened wish lists or expanded budgets, nearly half (49%) of recent first-time homebuyers and more than a third (39%) of prospective first-time homebuyers said they fell in love with a home last year – but they were outbid or later learned they couldn’t afford it. For many, it happened more than once: 20% were outbid on at least one home, and 20% made five or more offers before finally succeeding.


“You have to know what you can afford before you head too far down the homebuying road,” says realtor.com Home and Lifestyle Expert Lexie Holbert. “Putting pen to paper and getting a real sense of your current monthly expenses and what you’re saving each month is a good place to start when thinking about your mortgage. Especially as a first timer, it’s really important to stick to your budget when searching online so you don’t fall in love with something you can’t afford.”


For the 44% of Americans who plan to buy but don’t think they have enough saved for a down payment, their first home might be closer than they think. Half of recent first-time home buyers were able to save for a home in less than three years, mostly by setting aside a portion of their paycheck each month (50%), cutting out discretionary spending (33%), and saving lump sum money like tax refunds (32%).


Plus, help from family could get them there: 52% of Americans who bought their first home in 2020 said they got help with their down payment from friends or family. The number one lender? Their parents.