What Has The Eviction Moratorium Done To The State Of Real Estate In South Florida
When the COVID-19 pandemic became a crisis, the Center for Disease Control and Prevention issued an eviction moratorium to caution renters in the states that were highly affected. The eviction moratorium was to end on July 31, but due to the high number of Delta variant reported cases, the CDC has extended the eviction moratorium for another 60-days. One of the questions that residents of South Florida ask themselves is how this extension of eviction moratorium will affect the local real estate market.
Although the CDC intentions are justifiable, it’s evident that the deferment of eviction moratorium will have its pros and cons in relation to the real estate market in South Florida. The CDC's decision to extend the Federal Eviction Moratorium is expected to cover about 90% of renters who were at a high risk of becoming homeless in the middle of a pandemic.
By temporarily halting the eviction in states with high levels of delta virus transmission, the federal government believes that there will be enough time for states to release billions of dollars in federal relief to renters. The extension will give agencies a good opportunity to publicize the availability of available rental assistance funds.
On the downside, we are currently in a seller’s market, and there is high demand for homes by prospective homebuyers and renters. However, the extension of the eviction moratorium will mean few homes will be available for renting since more of them are currently occupied. Landlords/homeowners can’t list most of their properties right now, and this is one of the major causes of low inventory.
When we have fewer properties on the market for sale, the bidding war increases, and that’s the reason why home prices are soaring high in South Florida this summer. Homebuyers are now finding themselves between a hard place and a rock, wondering whether to buy properties at top dollar or wait until the market cools down. For renters in South Florida who are already facing eviction, this is a good chance to plan their next step once the moratorium gets lifted at the lapse of 60 days.
We will likely see the hot seller’s real estate market in South Florida cooling down in October as the inventory is expected to increase. The demand for homes to buy/rent will also diminish if more listed homes are on the market after the expiry of the eviction moratorium. The federal government is also expected to revise the historic low mortgage interest rates upwards to stabilize the housing market.