There’s positive news in the housing market this morning as the National Association of Realtors (NAR) claim that business is picking back up! The association claimed that nine out of ten of its members reported an increase in business as local governments continue rolling out their reopening plans. While the amount of purchasing seems to be rising, the ideal living situation of many is shifting. The NAR claimed that about a quarter of its members reported client interest of moving to less populated areas than their previous dwelling. It will be interesting to compare how large and mid-sized cities rebound and grow in the near future compared to smaller ones.
In yesterdays update, we addressed that the Census Bureau data suggested 31% of renters were not confident they would be able to make next month’s payment. Data from the NAR claimed that property managers and landlords only received 19% and 36% of their rent payments on time. Utah, according to the Aspen Institute, is projected to see one of the 6 highest renter default rates in the country.
We are still seeing near all-time low interest rates; however, there are signs of a small correction as mortgage backed bonds took a small dip this morning. With this initial sign of weakness and extreme fragility in the market, float if you are able to watch the market closely.