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30% Of Americans Didn't Make Their Housing Payment In June

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#1
The For Sale signs are popping up like mushrooms in my region. Everyone is hoping they can get pre-crash prices - we'll see.

https://www.zerohedge.com/personal-finance/30-americans-didnt-make-their-housing-payment-june

30% Of Americans Didn't Make Their Housing Payment In June


Mon, 06/22/2020 - 11:22



A stunning 30% of Americans didn't make their housing payment for June - a figure that is likely going to ripple through the housing industry in coming months. According to a new survey by Apartment List, the rate is similar to May and shows that even though other industries are rebounding, the situation has not yet improved meaningfully in housing.

These figures stood at 24% in April and 31% in May, before falling slightly to 30% in June. One third of the 30% in June made a partial payment, while two thirds made no payment at all.



"Missed payment rates are highest for renters (32 percent), households earning less than $25,000 per year (40 percent), adults under the age of 30 (40 percent), and those living in high-density urban areas (35 percent). While the missed payment rate for mortgaged homeowners is just 3 percentage points lower than renters," the survey showed.




Despite the trend of missing payments at the beginning of the month, households have been able to play catch-up later in the month and "narrow the gap" by making payments in the middle of the month. This was the case in May, where the missed payment rate "dropped from 31 percent at the beginning of the month to 11 percent at the end."
We'll see how long people can play catch up.

Meanwhile, as the survey notes, delayed payments in one month are a strong indicator for coming months. 83% of those who paid on time in May did so in June. Meanwhile, only 30% of those who were late in May have made their payment in full for June.

This means the data for the beginning of July is likely to be just as ugly as June.




And, rightfully so, there continues to be concern over eviction notices in the coming months. The survey found that: "over one-third of renters are at least 'somewhat concerned' that they will be served an eviction notice in the coming six months."
The number rises to 56% when polled just among those who have not yet paid their full rent for June.






Recall, just days ago we wrote that Americans had already skipped payments on more than 100 million loans while, at the same time, job losses continue to accelerate.


"The number of Americans that filed new claims for unemployment benefits last week was much higher than expected," we noted.


To put this in perspective, let me once again remind my readers that prior to this year the all-time record for a single week was just 695,000. So even though more than 44 million Americans had already filed initial claims for unemployment benefits before this latest report, there were still enough new people losing jobs to more than double that old record from 1982.


That is just astounding. We were told that the economy would be regaining huge amounts of jobs by now, but instead job losses remain at a catastrophic level that is unlike anything that we have ever seen before in all of U.S. history.
 

arminius

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#2
Not just the housing market, lots of merchandise going cheaper as folks struggle.

This lockdown is opening up huge opportunitys for those with cash, one of the reasons for this clusterfuck occurring.
 

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All by design. Gut the small business sectors, channel the herd through big box chains, get them hooked on unemployment insurance, then take that away and cue up the universal basic income rubbish to achieve full dependency on mommy and daddy goobermint.
 

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I know a few folks who are seriously considering taking a hit on their 401k's, paying off their debts with it, sell their houses and moving to a much simpler place to live (i.e. very rural places).
 

solarion

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GTFO of the cities...while you still can.
 

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There have been some awesome deals out there for those with green backs.
MAGA for the rich?

Or for those with a printing press.
 

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Housing is still FLYING off the market right now around here, and it scares/excites me.
 

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My thinking is this may not be as big of an issue as it appears to be ... it just depends on who is taking the haircut. I suspect rents will slowly drop and some of these rent payments will be privately renegotiated because it is better for the landlord to get some rent and keep the tenant than just have the units vacant and then have to drop the rent.

bb
 

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#12
Or those not stupid enough to spend every dime they get their hands on.
Nobody is going to by a McMansion right now. I don't know a single person who has told me they are shopping for RE.

Or were you talking about the three G's?
 

solarion

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Residential real estate is moving just fine...at least here in the midwest. I've several realtor friends and they're often too busy working to hang out of late.

I wouldn't be buying RE just now as I believe it's due for another haircut, but people have to live somewhere and bankster credit is cheap.
 

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The For Sale signs are popping up like mushrooms in my region. Everyone is hoping they can get pre-crash prices - we'll see.

https://www.zerohedge.com/personal-finance/30-americans-didnt-make-their-housing-payment-june

30% Of Americans Didn't Make Their Housing Payment In June


Mon, 06/22/2020 - 11:22



A stunning 30% of Americans didn't make their housing payment for June - a figure that is likely going to ripple through the housing industry in coming months. According to a new survey by Apartment List, the rate is similar to May and shows that even though other industries are rebounding, the situation has not yet improved meaningfully in housing.

These figures stood at 24% in April and 31% in May, before falling slightly to 30% in June. One third of the 30% in June made a partial payment, while two thirds made no payment at all.



"Missed payment rates are highest for renters (32 percent), households earning less than $25,000 per year (40 percent), adults under the age of 30 (40 percent), and those living in high-density urban areas (35 percent). While the missed payment rate for mortgaged homeowners is just 3 percentage points lower than renters," the survey showed.




Despite the trend of missing payments at the beginning of the month, households have been able to play catch-up later in the month and "narrow the gap" by making payments in the middle of the month. This was the case in May, where the missed payment rate "dropped from 31 percent at the beginning of the month to 11 percent at the end."
We'll see how long people can play catch up.

Meanwhile, as the survey notes, delayed payments in one month are a strong indicator for coming months. 83% of those who paid on time in May did so in June. Meanwhile, only 30% of those who were late in May have made their payment in full for June.

This means the data for the beginning of July is likely to be just as ugly as June.




And, rightfully so, there continues to be concern over eviction notices in the coming months. The survey found that: "over one-third of renters are at least 'somewhat concerned' that they will be served an eviction notice in the coming six months."
The number rises to 56% when polled just among those who have not yet paid their full rent for June.






Recall, just days ago we wrote that Americans had already skipped payments on more than 100 million loans while, at the same time, job losses continue to accelerate.


"The number of Americans that filed new claims for unemployment benefits last week was much higher than expected," we noted.


To put this in perspective, let me once again remind my readers that prior to this year the all-time record for a single week was just 695,000. So even though more than 44 million Americans had already filed initial claims for unemployment benefits before this latest report, there were still enough new people losing jobs to more than double that old record from 1982.


That is just astounding. We were told that the economy would be regaining huge amounts of jobs by now, but instead job losses remain at a catastrophic level that is unlike anything that we have ever seen before in all of U.S. history.
What is a house payment? Do people still do that??
 

WillA2

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#15
Just please leave the hammer and sickle home!!
Lots of transplants where I'm located. Most people in my area came here for the work. That's why, where I live, it's a small town atmosphere among the transplants I live around. Like me, they came from the country and are raising their children accordingly. Marked difference between their kids and others in general. These are the people I'm hearing the talk from. So if they leave for simpler places to live, they would just be going home.
 

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#16
Article is misleading/arriving at wrong conclusion. First of all the data includes renters so it’s NOT that many mortgagors. More importantly, when gov passes a LE telling the masses they get a free pass to not make payments for 3 months, then yeah...a BUNCH of idiots are going to jump on that bandwagon even if they CAN afford to make the payment.
 

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Article is misleading/arriving at wrong conclusion. First of all the data includes renters so it’s NOT that many mortgagors. More importantly, when gov passes a LE telling the masses they get a free pass to not make payments for 3 months, then yeah...a BUNCH of idiots are going to jump on that bandwagon even if they CAN afford to make the payment.
"While the missed payment rate for mortgaged homeowners is just 3 percentage points lower than renters," the survey showed."
 

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Lots of transplants where I'm located. Most people in my area came here for the work. That's why, where I live, it's a small town atmosphere among the transplants I live around. Like me, they came from the country and are raising their children accordingly. Marked difference between their kids and others in general. These are the people I'm hearing the talk from. So if they leave for simpler places to live, they would just be going home.
And do what for work? Or are they getting near retirement age?
 

WillA2

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Construction, Engineering, etc.
 

the_shootist

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30% Of Americans Didn't Make Their Housing Payment In June
70% of Americans did
 

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#21
Housing in many parts of FL is on fire. One day and pending. Some subdivisions, only one house available. Cheap loans and with what 85+ % folks working. Friends in fly over NO VIRUS areas of South Dakota (yes they do exist) homes are selling extremely well. Oh but these are Red areas and responsible people, so who doesn't want to be there.
 

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I know a few folks who are seriously considering taking a hit on their 401k's, paying off their debts with it, sell their houses and moving to a much simpler place to live (i.e. very rural places).
Sounds like a great idea.
 

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the_shootist

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Sounds like a great idea.
I can pay off my mortgage but don't see any value in it. No one can own a piece of RE free and clear anymore. RE taxes taxes guarantee you'll be in debt for the rest of your life. I'd just as soon use the bank's fake money to live in my house and invest the fake capital I have in something of value that I can hold

'Owning' real estate is a scam
 

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I can pay off my mortgage but don't see any value in it. No one can own a piece of RE free and clear anymore. RE taxes taxes guarantee you'll be in debt for the rest of your life. I'd just as soon use the bank's fake money to live in my house and invest the fake capital I have in something of value that I can hold

'Owning' real estate is a scam
Not a scam, it just isn't really possible anymore.
 

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I can pay off my mortgage but don't see any value in it. No one can own a piece of RE free and clear anymore. RE taxes taxes guarantee you'll be in debt for the rest of your life. I'd just as soon use the bank's fake money to live in my house and invest the fake capital I have in something of value that I can hold

'Owning' real estate is a scam
Depends on where you live, some jurisdictions are heavy taxation, some not as much. My property taxes are very manageable because the county appraises very low compared to market value. The county has no debt, no school bonds, and a pretty austere county budget, so the pressure to maximize revenue is low. It is not unusual for a 1/2 million market value property to be on the tax rolls for 100k.
 

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Depends on where you live, some jurisdictions are heavy taxation, some not as much. My property taxes are very manageable because the county appraises very low compared to market value. The county has no debt, no school bonds, and a pretty austere county budget, so the pressure to maximize revenue is low. It is not unusual for a 1/2 million market value property to be on the tax rolls for 100k.
All that being said, how much is the tax bill and why should you pay a tithe to the gubbermint for property you're supposed to 'own'?
 

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Last edited:

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#35
Nobody is going to by a McMansion right now.
Lots of people are though.


I don't know a single person who has told me they are shopping for RE.
Someone's buying them. Sellin' like Aunt Jamima hotcakes, as others in the thread have mentioned.


Or were you talking about the three G's?
I'm talkin' about anyone smart enough to have been living on less than their means. Ie: those not spending every dime they got. Those are the ones able to buy the dip, so to speak.
 

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#36
Housing is still FLYING off the market right now around here, and it scares/excites me.
Absurdly low mortgage rates are an incentive for many.
I am looking at a rural property next to my dad's that's been on the market for about a year.
They've lowered the price twice, but still too high. Getting ready to make a lowball offer $50k below asking, lol.
 

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Plenty of things selling around here, maybe people moving to the sticks (I live in a town of 850) from the suburbs. I have dry powder ready but things need to drop before I'm buying anything.
 

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#39
North Dakota had a referendum to eliminate property tax and the people voted to keep them. Who do you blame?

https://ballotpedia.org/North_Dakota_Property_Tax_Amendment,_Measure_2_(June_2012)

The example I gave was mine and the taxes are 1500 a year.
What I've noticed is that the higher the home values, the higher the property tax is and therefore the better your schools are. In a way, its the new way that segregation works and it works REALLY well.

Thats why bussing was such BS. You paid the big bucks to get out of the slums and the Democrats shipped all the economically distressed children into the more wealthier schools. They still try to do it but the academic standards are usually too much for the under privileged kids. Its not that they're stupid - well some are; they just don't have a stable 2 parent family at home that can provide educational guidance.
 

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#40
I think this is an absolute crash IF these forebarences are due at the end of 6 months. If they instead tack on 6 months to the end that is a different story. ZH seems to think it's all due in 6 months.