Business
On this episode of the podcast, Tim talks with his good friend Rick Sharga, Executive Vice President of RealtyTrac. They discuss the current market conditions that have resulted from the pandemic and the recession that followed, particularly how this recession is atypical and can’t necessarily be treated like previous ones. Rick talks about his outlook on the foreclosure environment and why data shows that there are not really as many people in serious delinquency as is being reported. They also talk about housing prices and walk through the presumptive President-Elect and Vice President-Elect’s proposed policies regarding the housing industry. This is a very informative session that you will want to be sure to tune in for! To view the slides from this presentation, please visit Tim's YouTube Channel or Facebook Page.· Foreclosureso Delinquency rates§ They are the highest they have been since 2009-2010§ However, all of the homeowners who are taking advantage of the governmental forbearance program are included in this number§ As soon as they set up a payment plan with their lender, they are removed from this list§ 70% of homeowners have more than 20% equity in their homes§ So they have a much higher likelihood of selling their homes than foreclosing§ This depends on demographics, demand, and interest rateso Sub-$250k homes are in higher demand now than ever beforeo There is a dichotomy in the workforce but both white-collar and blue-collar workers are looking to buy in this price rangeo The lower-middle class has essentially been neutralized in the homebuying process§ Entry and 2nd tier move-up properties are not availableo The housing industry crisis is really and affordability crisis· Biden Policieso $15,000 tax credit for first-time homebuyers§ A solution in search of a problem§ This will increase demand and drive home prices even higher§ More fees will be tacked on to Fannie Mae and Freddie Maco Homeowners Bill of Rights§ Modeled after California’s § Manifests as punitive§ Few people need this§ Missing a key component: protecting landlords· 85% of landlords own 2 units or fewer§ Doesn’t really affect hard money loans§ Could be helpful in low-income neighborhoods§ Key: in persistently underserved communities§ Provides loans to fix up the propertieso Public credit reporting agencyo Constructing affordable housing§ Will likely only help big developerso Industrial – finding holes in markets, cloud computingo Commercial – short-term pain for long-term progresso Hotels – currently at about 39% occupancy, will take a while to get them back on their feeto Retail – was already struggling, more bankruptcies, spaces could be repurposedo Office space – more people are working from home, but they also need more space per worker in-office· Predictions/Outlook for 2021o Depends on how soon we can get the virus under control and how the economy responds Connect with Rick:https://www.linkedin.com/in/rickshargahttps://twitter.com/rickshargaDecember 9th webinar: https://t.co/NXqDJ82Epf?amp=1