In this segment of our weekly Outlook Webinar: COVID-19 Update, Senior Managing Principal, Tim Sullivan, and Chief Economist, Ali Wolf, provide real-time updates on how the coronavirus pandemic impacts the housing industry.
Economic and industry updates include:
Some states continue to maintain strict containment measures; LA County stay-at-home orders extends until July and NY extends stay at home until June
The U.S. Government is working on a historic $3T stimulus package; More money will go to businesses, consumers and local governments.
Unemployment Rate is at a historic high between 14% – 25% with ~ 20.5MAmericans out of jobs as of April – Leisure and Hospitality, Trade, Transposition and Utilities and Educational and Healthcare are the hardest hit industries.
23% of builders indicate detached homes are selling better during the COVID-19 pandemic, and surprisingly, 19% of builders are increasing prices.
Capital operators are more disciplined as a result of COVID; for example, underwriting requirements are more stringent, lenders are looking to close deals that were already in the works and lenders continue to focus on operators with a proven track record of execution.