According to a breaking report from The National Realtors Association, “WASHINGTON (June 30, 2021) – A majority of the Supreme Court agreed Tuesday evening that the Centers for Disease Control and Prevention lacked authority to implement a blanket, nationwide eviction moratorium. Although the court declined to lift the ban immediately, the ruling means the current moratorium will expire at the end of July. National Association of Realtors® President Charlie Oppler issued the following statement in response to Tuesday’s ruling
‘This is a massive victory for property rights,” says NAR President Charlie Oppler. “For more than a year, mom-and-pop property owners have been pushed toward financial ruin as they upkeep their properties and pay their taxes and mortgages with no income of their own. With the pandemic waning and the economy improving, it is time to restore the housing sector to its healthy, former function. Property owners also deserved this absolute clarity from our federal court system regarding property rights in America to avoid similar financial harm in the future.’
‘This ruling keeps in place certainty for tenants for another month while bringing clarity to struggling housing providers. It is now critical that the nearly $50 billion in rental assistance NAR helped secure gets out to those who need it most,’ Oppler continues.
The eviction ban was first issued in September 2020 during President Trump’s term and was extended by President Biden several times through the end of July.
With the support of NAR, the Georgia and Alabama Associations of REALTORS® challenged the orders in federal court.
In May, a U.S. federal judge sided with housing providers, ruling the moratorium unconstitutional. However, the judge issued a stay of her ruling pending appeal.”
What Does This Mean For Housing Supply & Prices?
Will this eviction ban coming to a close in the end of July mean a huge supply of new housing hitting the market, balancing out supply & bringing down prices? Likely not in my opinion. For one thing, builders have underbuilt by 75% in the last decade or so after 2008. That is a lot of needed supply.
Secondly, not all tenants were non-paying. Some paid the full amount due & are in good standing. Many have paid some, or most of what they owe as they understand they will need to sooner or later. The debt does not disappear, only the consequence of eviction was delayed.
Thirdly, eviction is a process & each one will take time & backlogged court appearances. Even if everyone who didn’t pay was kicked out, landlords are in the business of making money by owning property, & likely won’t sell unless they need to. Most of them understand reserves are needed for unforeseen events, even if this one was longer & more costly than most prepared for.
What we may see is a slow down in the rapid appreciation of home values as prices may plateau rather than see a normal year’s value increase in one month. Whether you may be a tenant or a landlord dealing with this situation, please consult proper legal counsel to decide your course of action. I am not a lawyer & do not provide legal advice, just expertise in buying & selling real estate.
Image & article courtesy of The National Realtor’s Association.