Everyone is looking forward to what will happen next within the real estate industry. Why is there such uncertainty within the real estate industry? The real estate sector wants to see what happens in various corners of the real estate markets.
A keen real estate industry observer would notice that many changes took place in 2020 due to government intervention in the markets and strong fiscal stimulus. These government interventions encouraged individuals all around the United States to rush to purchase houses. Indeed, there was quite a bit of financial gain for many in the real estate industry as this took place.
But other experts think that the government stimulus programs and significant interventions will slowly start to roll back. Different government protections that individuals would notice and appreciate, like eviction bans will expire. But surprisingly the CDC noted that they would extend the eviction ban until the end of July. Here is what you must know about this matter.
The Biden Administration Will Extend the CDC Residential Eviction Moratoriums
The Biden administration noted recently that it would approve the extension of the Center for Disease Control and Prevention’s eviction ban until the end of July. But here is the more interesting point here, the CDC and Biden Administration did note that it would continue to supply more leniencies.
It is essential to note that the eviction ban first took place under the Trump Administration. The eviction ban would then obtain another extension once the United States switched administrations. This is the third extension on the eviction ban, and if one were to believe the government’s past and present position, it will be the last one.
The government notes that they are extending it one more month because of the pandemic and the significant impact that COVID-19 had on people’s health. The CDC and the Biden Administration are positioning behind the point of infection control as to why it implemented another extension.
But it is hard to justify further extensions as it looks like COVID-19 cases are dropping, jobs are opening, and people are getting back to normal.
What Happens Next in the Real Estate Industry?
If the current White House leadership team continues to intervene in the markets and walks back their statements on eviction bans, then they may extend it further. If they draw a hard line and say that this is the last one, then that signals more organic activity within real estate markets.
It is essential to note that the White House did state that it will look into other ways to help those renters and homeowners who are still financially strapped for cash.
One way they are doing this is by working with the U.S. Justice Department to encourage courts in each state to be more lenient when hearing eviction cases. That is to say, to utilize strategies to keep delinquent consumers within their homes.
The institution urges courts in various states to implement strategies that protect delinquent tenants and landlords. But of course, this is hard to do, as protecting tenants will indicate that landlords must find ways to deal with lower payments.
Potential participants in the real estate market may have to watch to see how the real estate industry reacts by the end of July and through the following months.
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