The Housing Economy in October

In this podcast we go over the some broader economic indicators of the real estate market.

Forbearance update - As forbearance begins to run out and tenants are obligated to pay or go into delinquency more folks are paying their rent with credit cards. 4% of households are delinquent in their payments. One important thing to note is that those in Colorado who are delinquent will in the vast majority of times be able to sell and make it out debt free due to their gained equity.

Growth in loan applications to purchase higher end homes have been remarkable. The barrier to entry is lower for higher end buyers and with interest rates where they are the dollar goes a long way.

For First-time homebuyers we are seeing rents just not go down significantly. Even within the last studied recessions rents only went down in one year (2007). Rent growth has slowed and it will be interesting to see what landlords will do if another round of covid hits us. However, until then we are seeing it is still more than worth it to go about the trouble of buying a house to pay a mortgage instead of a monthly rent.