Market Watch - 13 Aug. 2021

Since last week, residential housing had setbacks. New Listings and Properties Under Contract were flat while Pending and Sold Properties decreased. There are slightly more new listings than sold, so it’s a minor improvement.

 
The Lease Market saw declines in new listings and properties leased since many districts started new school years and the CDC stepped in to regulate the lease market mechanisms last week.

The CDC Eviction Moratorium expired on July 31, 2021. Congress didn't impose a new moratorium.

The expectation was that more houses would enter the market after the moratorium expired. Landlords could liquidate those houses relatively quickly and extract appreciation from the properties. After months of tenants living in those properties without paying rent and most likely unwilling to perform regular maintenance, it is feasible those properties would need repairs to become market ready. Most were expected to hit the market starting on Aug. 15 after evictions and repairs.

However, the CDC issued a "new" moratorium on Aug 3. They stated it is not an extension of the previous moratorium that the Supreme Court ruled against. Instead, this is a "new moratorium" that only affects "Areas of Substantial and High Transmission" of COVID-19 - which is about 90 percent of the USA. Unless overturned or extended, the “new moratorium” is set to expire Oct. 3, 2021.

Alabama and Georgia associations of REALTORS were joined by the national association in lawsuits to stop this action.

The Lease Market had a sharp increase after the previous eviction moratorium ended. However, it was followed by a significant drop after the “new moratorium” was ordered. With a shortage of lease homes available, those potential tenants must work harder to find housing in both the lease and preowned markets.

Since the “new moratorium” was implemented, listing volume has been on a slow but steady decline. Sold properties had a spike as school began across much of the DFW Metroplex. It has since decreased below the volume of July 30.

The volume of Price Decreases had a sharp turn after the new moratorium was announced. It’s the first drop since the moratorium delay from June to July but a much higher volume as sellers understood an influx of former lease houses to the market is unlikely soon.

Months Of Supply measures demand. The Months Of Supply was at historic lows in March. The historic high point for lumber futures was in May. Unemployment stopped paying additional supplements at the end of June and unemployment numbers dropped in July. Simultaneously, many states began to roll back pandemic protocols during these months as vaccination rates climbed.

The result is that employees went back to work as the costs of building materials declined. Subsequently, new housing starts increased as builders purchased materials at bulk prices and worked on demand backlogs.

The new construction homes have affected the Months Supply of Inventory numbers while preowned listings remain relatively flat near historic lows.

The “Fourth Wave” of COVID-19 Delta and Lambda variations has put a strain on area hospitals and created a rollback to some pandemic restrictions in urban centers. These actions are new this week and are likely to affect sellers who are concerned about the disease transmission.

At this point, it’s still a strong seller’s market for preowned houses with limited supply of both lease and preowned properties. Buyers with the help of REALTORS can find more new construction homes in outlying areas of the Metroplex.

I have a variety of options for sellers who want to buy before they sell and might need a small repair budget to maximize their selling price and/or speed of sale. I also know where new construction homes are available in North Texas.

Call, text or email when you’re ready for me to help you sell or buy a residential property in this complex market.

I’ve Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

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