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The Housing Market Is In A Recession And What It Means For Those Looking To Buy A House

Over the last few months, the housing market was at an all time high between high demand, surging prices and low interest rates.

However, recent data revealed that the market may actually be in a “recession” from where it once was. 

“We’re witnessing a housing recession in terms of declining home sales and home building,” said Lawerence Yun, chief economist for the National Association of Realtors.

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The slowdown in market sales will hurt the economy but it could also help those people who are searching for a home who are willing to pay the high prices.

According to Barrons, ever since July, previous homes were sold at an annual rate of 4.81 billion which marked the lowest rate since November of 2015.  

New home sales also have found themselves in a decline into their their lowest level in six years. 

“It’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”

Both home builders and home sellers are experiencing the slowdown which explains why the prices are still up even with the start of this “recession.”

The rise and fall of the housing market also goes along with supply and demand. Even though the demand for homes has dropped recently, the supply count is still very tight. 

The lack of supplies is partly due to the lack of construction that has occurred over the last decade and even since the 2008 crash.

The demand for buying new homes have continued to drop since January, but the mortgage rates have still continuously faced a rise from 3.3% at the beginning of the year to 6% now.

The high mortgage rates have made it harder for those looking to buy a home to afford them.

The demographics also play in part with the supply and demand of the housing market as well. 

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Even while there is a recession within the market, there are still more people searching for a home than there are actual homes to buy. 

“We are seeing more inventory come into the market, but it’s not enough to meet the buyer demand,” said Jessica Lautz, vice president of demographics and behavioral insights at NAR. 

Given the constant highs and lows of the market, buyers may want to be patient before they decide if they are ready to commit to buying a home. 

For first-time homebuyers, they also have to consider the price of rent because that is consistently increasing as well. 

“Even though borrowing costs have risen, it still in the long run may be worth buying a home given that what’s driving inflation right now is rising rental prices. It still may be an opportunity to get out of the pressure of rents,” said Jeffrey Roach, chief economist at LPL Financial, a national broker-dealer. 

Virtual Real Estate Marketplace Launching In Metaverse 

Origin is a technology company that is gearing up to launch a virtual real estate marketplace in the metaverse that can be done across multiple blockchains. Origin is providing a singular marketplace for users to buy, sell, and trade land in the metaverse, as well as physical homes sold as NFTs. 

Origin is aiming to be like traditional real estate platforms in the sense that they will be a hub for sellers and buyers to connect with each other based on the clients needs. 

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According to Fred Greene, the founder of Origin, “the demand for metaverse land is continually growing. What the market needs is a single source of data. A reliable platform that simplifies the purchasing of land, while providing buyers and sellers with all the information they need to navigate the process.”

The current metaverse marketplace makes it difficult for transactions to occur over multiple blockchain platforms. Origin is hoping to fill this space in the industry by acting as the middleman between sellers and buyers, and interacting with hundreds of tokens and metaverse worlds. 

By simplifying the transactional process, Origin is hoping to make digital real estate available for everyone. The company wants the masses to see the metaverse as universally accessible so that more people can take advantage of the many perks that it can offer. 

Beyond giving buyers easier access to real estate, Origin is aiming to build communities of active and interested buyers and sellers, who will be able to advertise their listings in front of a much larger audience than the metaverse currently allows. 

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By becoming a multichain platform and simplifying the overall transaction process, Origin is creating a space for even more buyers. 

The company is reopening current barriers that make it difficult for architects and innovators to communicate with each other on certain projects. The metaverse is known for hosting a multitude of isolated worlds catered to each user. Origin is building bridges to make it easier for those worlds to come together when it comes to real estate transactions.

Origin is patent-pending currently, and is aiming to be a major marketplace that focuses specifically on metaverse land. The company has plans to incorporate the sale of both real world properties as NFTs as well as virtual properties. 

The company is currently on track to become the biggest hub for buyers, sellers, and renters, as it will likely be the only source for all metaverse real estate transactions across multiple blockchains.

Pay Rent Reminder

Billions In Renters Aid Still Available For Struggling Americans 

Six months ago Congress allocated more than $45 billion to the renters’ crisis which was triggered by the Covid-19 pandemic. Most of that money is still available today, in fact, only about a fifth of it has been used so far. 

According to data from the US Department of Treasury, $10 billion of the funding reached households by the end of last month, meaning there’s still around $35 billion in aid unspent and ready to be used. 

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Around 12 million adults are currently behind on their rent payments, according to a recent report by the Center on Budget and Policy Priorities. One analysis over the summer found that the average American renter owed about $3,700, and in some areas rental debts were topping $10,000 per household. 

“There’s certainly remaining need in most states and cities. However, efforts to disburse the money have been challenged by a lack of awareness and cumbersome applications. Still, renters should not give up on getting the help.” said Diane Yentel, president and CEO of the National Low Income Housing Coalition.

Just applying for renters aid can help you stay in your home longer. In at least five states individuals who apply for assistance are entitled to some level of protection from being pushed out of their homes. 

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For renters who don’t know how to apply, The National Low Income Housing Coalition has a state-by-state list of more than 500 organizations that are currently giving out federal money. The Consumer Financial Protection Bureau also has a new online tool to help renters easily apply for the aid. 

To be eligible for the aid at least one member of your household has to qualify for unemployment benefits or attest in writing that they’ve lost income or incurred significant expenses due to the pandemic. 

There also needs to be a demonstrated risk of homelessness, which may include a past-due rent or utility notice. 

Additionally, your income level for 2020 can’t exceed 80% of your area’s median income, although some state’s have prioritized applicants who fall at 50% or lower, as well as those who have been unemployed for more than 90 days. 

You could potentially receive up to 18 months of assistance. If you’ve already been approved for rental funds but continue to be behind, you can reapply. If you are at risk of being evicted you can find low-cost or free legal help with an eviction in your state at Lawhelp.org.

COVID-19 Real Estate

College Students Organize Rent Strike Amid Covid-19 Pandemic

One University of London student recently told the story of how he and 200 other fellow students are currently involved in a rent strike due to their inability to afford housing amid the coronavirus pandemic. 

Family watching TV

New Movies Being Made Available To Stream Early Due To Coronavirus Pandemic

Thanks to social distancing initiatives brought on by the recent coronavirus pandemic, many Hollywood movie studios are releasing their movies directly to streaming services for fans to watch at home during quarantine. Since movie theaters will be closed down for the indefinite future, many studios have decided to put their movies on platforms months in advance, some are so freshly out of the theater that the only option is to buy them, however, others are being directly uploaded to certain services, so here’s what’s coming soon to your living room:

1917 is a World War One drama that is famously known for its continuous “one-take” cinematic style, and now it’s available to rent on a multitude of platforms for around $6, it’s also available to buy.

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Emma is another period piece based on the Jane Austin novel of the same name. Unlike 1917, however, this movie is available to rent for an increased price of $20, which is likely due to the fact that it was in theaters more recently.

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The Hunt is a satirical take on The Most Dangerous Game starring Emma Roberts and Hilary Swank. The movie is in the horror genre and was positively received by critics for its commentary on the political divide in modern American culture. It’s available to rent for $20.

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The Invisible Man was just getting a wave of positive reviews when the coronavirus pandemic shut down movie theaters worldwide. Starring Elisabeth Moss, the remake of the classic horror story is currently available to rent for $20 as well.

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Birds Of Prey is the latest DC installment of the Suicide Squad series of movies starring Margot Robbie. A superhero movie following a cohort of super-villain independent women, Birds Of Prey was receiving high praise from critics when in theaters. Unfortunately, since it was still in theaters, as of right now you can only purchase the film for $20.

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Bloodshot was adapted from the widely-popular graphic novel, and stars Vin Diesel as an unstoppable, self-regenerating, “Super Soldier” and is currently available for purchase at $20.

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Onward is the newest Pixar Studios film. The two main characters are teenage elves voiced by beloved actors Chris Pratt and Tom Holland. The pair live an average life in elf suburbia, until one day, the call for adventure is just too loud to ignore. Onward is currently available to buy for $20.

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The Way Back stars Ben Affleck and takes on the classic story of a troubled former pro athlete who is on a path of personal/professional redemption. While on this path, he finds himself becoming the coach of a struggling high school team. The movie is currently available to buy for $20.

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Beyond just renting and buying, there are a few new movies that are also going to be uploaded onto streaming services such as Netflix, Hulu, and Amazon Prime in the coming weeks. These films include The Call of the Wild, Downhill, The Lovebirds, Portrait of a Lady on Fire, Trolls World Tour, and Sonic The Hedgehog. 

While it may be a while before movie fanatics have the opportunity to get back into a theater, at least they’ll have these new options to occupy themselves in the meantime. Until then, it’s important to stay home, stay clean, and keep practicing proper hygiene.