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From: http://housingbubble.blog/?p=5085

You Chose To Buy A Home That You Can’t Afford

August 26, 2021Ben JonesUncategorized133 Comments

A report from the Atlanta Journal Consitution in Georgia. “The metro Atlanta housing market clicked into balance in July: Supply met demand and home prices stopped their rapid rise. About 12,300 homes were listed for sale last month. In the city of Atlanta, home prices are up 20% from a year ago, according to Bill Adams, president of Adams Realtors. But the change in price ranges from a decline of 3% in Candler Park to a leap of 36% in Inman Park, he said. The trend of higher prices is going to continue because there won’t be a large increase in homes listed for sale, he predicted.”

From Market Watch. “‘Although housing is expected to remain sturdy for some time, several key gauges are cooling as the pandemic-induced buying frenzy eases and elevated prices cut into affordability, particularly for first-time homebuyers,’ Priscilla Thiagamoorthy, an economist with BMO Capital Markets, wrote in a research note.”

The Chicago Tribune on Illinois. “Seneca Oaddams, 44, bought his two-flat in Roseland for $132,000 a little over two years ago. The property, which he purchased as an investment and rental property, now has an estimated worth of $250,000, according to Redfin. But having endured 17 months of the pandemic, Oaddams says it’s hard to hold on to the building. His tenant, whose rent covers approximately half of Oaddams’ monthly mortgage, lost her job at the start of the pandemic and hasn’t been able to keep up her payments.”

“‘I’m actually hopeful for the future,’ Oaddams said. ‘I’m hopeful that it’s going to get better. … It needs to get better. Who doesn’t want to own property? Why not be able to help someone as well and lessen the load on your pocket with a building, so it’s a win-win for the renter and the tenant? The problem is when the rent can’t get paid.'”

The Norwich Bulletin in Connecticut. “Mark Kulos, president of the Norwich Property Owner’s Association and a landlord with 27 units, said while there are ways today for landlords to evict people, most won’t try because a misstep under the federal moratorium can lead to heavy fines. Kulos said this affects ‘mom and pop landlords,’ who have day jobs and have an operation of 50 units or smaller, as the landlord still has to pay for mortgage, taxes and upkeep without making a profit. ‘(The landlords) are working their other jobs to pay their bills, especially if the tenants aren’t paying,’ he said.”

From CBS DFW in Texas. “Clint Cash owns a handful of rental properties in the Dallas-Fort Worth area, some of whom have tenants impacted by the pandemic. Cash and other rental property owners believe the eviction moratorium that the Centers for Disease Control and Prevention enacted last year has gone on for too long with an expanding job market making it easier for people to find work. Cash says he’s sympathetic to those who still can’t pay their bills, but he says the government has put landlords in a position where they can’t either.”

“‘There’s not enough profit in it for these mom and pops to continue and pay their own bills and so they will lose their houses and those houses will thus go to foreclosure,’ he said.”

The Steamboat Pilot in Colorado. “Before casting their votes, members listened to nearly two hours of public comment from dozens of residents, most of whom were short-term rental owners, property managers or property owners who spoke in favor of short-term rentals. Michelle Williams bought her home on Bear Creek Drive in 2018, with a plan to retire in the home one day. Williams said she and her family spent four months in the home in 2020 and supported the city’s economy during the COVID-19 pandemic.”

“To supplement the cost of owning the home until she can retire in it, Williams rents her home out to nightly renters when she is not living in it. ‘We spent an absurd amount of money downtown, as we dined out almost every night,’ Williams said. ‘We’re really good people, and we want to do the right thing and abide by rules and regulations set forth.'”

“Debby Spiker, a resident on Meadow Wood Court, said she understands many property owners need to cater to short-term renters to help pay for their homes, but that choice infringes on her quality of life. ‘I’m hearing a lot of self interest and financial ‘woe is me,’ Spiker said. ‘It’s not my fault that you chose to buy a home that you can’t afford without renting it out to carry the cost.'”

“Spiker said nightly renters have brought ‘destruction’ into her neighborhood — as nightly renters are often loud, do not pick up trash and may cause other issues in neighborhoods traditionally home to full-time families and working residents. ‘I get you want to monetize your home, but it affects me personally,’ Spiker said.”

The New York Post on California. “There is really nothing Kate Beckinsale can’t do, including sell her longtime Los Angeles home after only weeks on the market. The Brentwood property, which was listed on Aug. 2 for $3.995 million, is already in contract after it found a buyer on Aug. 20, The Post has learned. The English-born actress has enjoyed a 15-year run in the four-bedroom, five-bathroom pad she purchased for $3.595 million in 2006.”

“But this also means that she won’t be leaving with that much of a profit, considering renovation projects over the years and broker fees.”