Covid, NAR and LOTS of EVICTIONS

    Listen to "Covid, NAR and LOTS of EVICTIONS | Lee Honish | David Bartels | Everhome.io" on Spreaker.

    12/9/20 Script (Projected record Time 55 min)
    Intro Music Jingle
    This is Lee Honish DIGITAL MARKETING AND CONTENT SPECIALIST, and you are listening to the “EVERY HOMES REAL ESTATE TREND BROADCAST”
    (Transition banter to lead into Lee’s Intro Monologue)
    Intro Monologue:
    Welcome to the EVERY HOME REAL ESTATE TRENDS BROADCAST. I am again Lee Honish and as always, I am with BROKER/OWNER David Bartels, you can always follow him on @DAVIDBARTELS and we have a covid eviction news & huge NAR update today. (Talk a little bit about what is going to be on the show today) but first…

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    (Transition banter to bring David into the conversation and lead into topic 1)

    (5 min) News #1 “Redfin CEO says the booming Covid housing market can get even hotter”
    Kevin Stankiewicz CNBC
    The hot housing market during the coronavirus pandemic could heat up further if more homes are put up for sale, the CEO of real estate brokerage Redfin told CNBC on Monday.
    “If we see people get more comfortable letting others into their home, we’re going to see more inventory on the market, and that’s what will drive sales volume,” Glenn Kelman said on “Closing Bell.” “Today, we are definitely inventory-constrained. There aren’t enough homes for people to buy.”
    Home sales have been a point of economic strength despite the significant damage caused by the pandemic, driven in part by the increased geographic flexibility of remote work.
    “Every week I think it can’t get crazier, it gets crazier,” Kelman said of the housing market. Still, he acknowledged the heat cannot be sustained infinitely. Mortgage rates are below 3%. That can’t last forever, but we think it can last through 2021,” he said.
    “We know, though, this is a cyclical business. There’s going to be a bust if there’s a boom,” Kelman added. “It’s just a matter of when. We don’t think it will happen soon.”
    “What’s driving this boom is true demand, that people want to live elsewhere. There’s less speculation. There’s less predatory lending. This isn’t just a finance-fueled boom,” Kelman said. “It is driven by a true change in consumer behavior, where people want to go to Montana or, at least, Sacramento or Tucson rather than living in the major urban centers.”

    (10 min) News #2 News 3 (2 articles) “The Looming eviction Crisis” CBS News
    "It's catastrophic," said Matthew Desmond, a sociology professor at Princeton University. These days, he is also is principal investigator of the university's Eviction Lab. "Let's put ourselves in the shoes of a family who gets evicted. We lose our neighborhood. Our kid loses their school. Often we lose all our things, our possessions, because they're piled on the sidewalk or taken by movers."
    "What the pandemic has done is made that situation much worse," Desmond said. "Ten million people have lost their jobs. Rents have continued. And we're seeing millions of people really at the threat of eviction during a time where your home is the best medicine. Your home is what can prevent you from getting sick."
    COVID has already had a devastating economic impact: One in four American households has experienced job loss or diminished income.
    Desmond said, "If you take that one situation, imagining that one family, and multiply it by millions, the country will be in a lot of pain if we don't address this crisis."
    Early last September, the Centers for Disease Control and Prevention, citing increased health risks from eviction during the COVID pandemic, issued an eviction moratorium through December 31 for people who can't make their rent. While protecting some, perhaps even most, renters from eviction, it still requires the payment of all that back rent on January 1, and provides no rent relief.
    The order averted a wave of evictions, but it's a band-aid.
    News #3 NPR Mary Kelly Maureen Pao “'These Are Deaths That Could Have Been Prevented,' Says Researcher Studying Evictions”
    Like much of the response to the coronavirus across the United States, the approach to housing during the pandemic has been an uneven patchwork.
    Forty-three states and Washington, D.C., put in eviction moratoriums starting in March and April, but 27 of them ended in the spring and summer. Then in September, the Centers for Disease Control and Prevention ordered a national stop to evictions.
    The CDC eviction ban isn't automatic and doesn't cover everyone. Thousands of people are still being kicked out of their homes.
    Still, the federal order has been protecting many — and it is set to expire at the end of December.
    Now, a newly published study makes the case that evictions are tied to an increase in coronavirus cases and deaths. The research, which has not yet been peer reviewed, compared numbers in the 27 states where state-level moratoriums ended with the 17 that have kept them in place.
    After controlling for factors such as stay-at-home orders, school closures and mask mandates, the researchers estimated that the lifting of moratoriums could have resulted in between 365,200 and 502,200 excess coronavirus cases and between 8,900 and 12,500 excess deaths — an average of 433,700 cases and 10,700 deaths.
    "I think whenever you see numbers like 430,000 cases, 10,000 deaths, it's surprising and it's troubling, and these are deaths that could have been prevented had the states maintained their moratoriums," says one of the study's lead researchers, Kathryn Leifheit of UCLA's Fielding School of Public Health.
    The CDC moratorium is set to expire at the end of the year. That's four weeks away and it's in the setting of over a million new COVID cases a week. So state and federal policymakers need to extend these protections to make sure that families and their communities can stay safe. Individuals have a bit of a role in this, too. Tenants can understand their protections under the CDC moratorium, help their neighbors understand theirs, and then reach out for legal aid.

    COMMERCIAL READ
    LIST YOUR HOME online, for one low set fee!
    Experience The Everhome Way and discover the benefits, risk free.
    Explore Everhome’s easy to use listing service risk free and begin your journey to sell your home like a REALTOR. Get the benefits of massive exposure, full service representation for critical elements of negotiations, legal forms, escrow and title for a low set fee, that saves you thousands.
    Visit everhome.io that WWW dot E V E R H O M E dot I O
    That’s everhome for every home

    Recurring Segments

    (15 Min) What’s Happening with NAR Segment: “CRMLS Changes”
    On November 19, 2020, the National Association of REALTORS® (NAR) and the U.S. Department of Justice (DOJ) announced that they are in the process of coming to an agreement that will affect how you use CRMLS products and services.
    Please note that this agreement is not yet final. As of this writing, they are in the middle of a 45-day communication period that will determine the exact rule changes. We will share the information we have so far, but some specifics may change.
    What This Means
    Please visit NAR’s official FAQ to learn more and watch a video explaining the agreement. Below is a condensed summary of proposed changes.
    Public display of buyer broker compensation
    “…[The] amount of compensation offered to buyers' agents for each MLS listing will be made publicly available. Publicly accessible MLS data feeds will include offers of compensation, and buyers' agents will have an affirmative obligation to provide such information to their clients for homes of interest.”
    Consumer access to all properties that fit their criteria
    “…MLSs and brokerages, as always, must provide consumers all properties that fit their criteria regardless of compensation offered or the name of the listing brokerage.”
    Forbidding buyers’ agents from representing services as “free”
    “While NAR has long encouraged buyers' agents to explain how they expect to be paid, typically through offers of cooperative compensation from sellers' agents, there will be a rule that more definitively states that buyers' agents cannot represent that their services are free to clients.”
    Lockboxes and licensed agents
    “[With] the seller's prior approval, a licensed real estate agent will have access to the lockboxes of properties listed on an MLS even if the agent does not subscribe to the MLS.”
    What Happens Next
    From 11/19/2020, NAR and the DOJ will have 45 days to agree on exact rule changes. The NAR Board of Directors and DOJ will both have to approve the new rules. Per NAR, the “Court overseeing the settlement must formally approve the agreement, at which point [NAR anticipates] that the new rules will take effect.”
    CRMLS plans to fully comply with the terms of this government-mandated agreement, once finalized.

    (5 min) Real Estate Investor Segment “Two Ways To Overcome The Challenge Of Financing Investment Real Estate During The Pandemic” Ellie Perlman Forbes.com Councils Member
    Many lenders are being careful and more conservative when it comes to lending money for multifamily properties due to the uncertainty in the market brought on by the pandemic. Hence, they may be taking steps to protect themselves from the potential greater risks involved. For one thing, I’ve seen many lenders lowering their loan to value (LTV) threshold. Prior to the pandemic, LTV might be anywhere from 7% to 80%. Currently, it’s more likely to be in the 65% to 75% range. For sponsors and investors, that means that a higher down payment is required and lower returns can be expected.
    Overcoming The LTV Threshold
    • Occupancy Levels
    With an LTV of