Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Real Estate

Home renovation declines in wake of COVID-19

Single-family authorizations and maintenance activity both drop in April

As COVID-19 cases continued to climb in April, the housing market felt the strain of the pandemic. Prior to the outbreak, Buildfax, a property condition data service provider, reported demand for new homes was so high that a major housing shortage was imminent.  

However, April saw a 7.37% month-to-month decrease in single-family authorizations as COVID-19 continued to spread. Contrary to the month-to-month trend, data shows a 1.2% year-over-year increase in single-family authorizations, which Buildfax states is likely due to construction being an essential business in the majority of the country.

Those numbers reveal a stark difference from March, when authorizations increased 6.62% compared to the previous year, according to a Buildfax report. The report equated the rise to pre-pandemic behaviors prior to stay-at-home orders. 

But it’s not just construction authorizations being hit. Existing housing activity took a nosedive in April when maintenance volume and spend slid 29.09% and 29.71% year-over-year, respectively. The remodel volume – a subset of maintenance that includes renovations, additions and alterations – decreased 33.83%.

While maintenance and remodeling numbers are typically viewed from a more regional or localized lens, existing housing spend continued to drop in the majority of major metros, according to the report. Sharp declines like these were most likely spurred by the growing unemployment rates coupled with a downturn in home sales.

Looking ahead, Buildfax estimates a strong revival in home sale activity as the economy begins to open back up. This prediction mirrors the forecasts by economists that a record-setting recession followed by an end-of-year turnaround is on the horizon.

“By and large, property transactions have slowed substantially, which subsequently affects the pace of maintenance and remodeling,” Buildfax Managing Director Jonathan Kanarek said. “On the bright side, we anticipate maintenance and remodeling to rebound as the number of home sales starts increasing later this year.”

Leave a comment

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

2020 ends with 3.4 million loans in delinquency

The final delinquency tally for December is in, with data revealing that by end of 2020, 1.54 million more mortgages were reported delinquent.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please