OWNERS NEWSLETTER - APRIL 2020

OWNERS NEWSLETTER – APRIL 2020

MARKET UPDATE – The state-wide mandated shelter in place orders that were imposed last month did cause us to modify some of our operating procedures, but it has been a small price to pay for the good fortune of being deemed an essential business allowed to remain open. The amount of business and the demand for housing has been strong. We rented twenty-nine single-family homes last month and twelve apartments. As of the writing of this letter, we have zero single-family homes available, zero townhomes available, only one apartment and three duplexes available. We are just shy of 100% occupancy. We have relatively few properties coming available at the end of the month and all indications are that they too will re-rent relatively quickly. Fort Hood has approximately 3,500 soldiers deployed in Europe that will be returning home just as soon as the temporary freeze on their orders is lifted, which will further add to the demand for housing. 

While stocks and other forms of investments have dropped in value as a result of the pandemic, property values here have been largely unaffected. For now, our housing market is in good shape.

RENTS – Last month, a nationwide moratorium on evictions was mandated by the government. As luck would have it, we were successful in collecting 100% of all rents due from our renters in March. 

With some political leaders encouraging renters not to pay their rents this month and a plethora of misinformation regarding rent payments circulating on social media, we were uncertain as to how many of our renters might opt out of making their April rent payments. Surprisingly, we had less than ten renters whose employment was impacted by the pandemic and needed additional time to pay their balances in full. To date, only two of our renters have not paid their April rent. This is exceptional! The county courts are not accepting any eviction suit filings until May 18, 2020, and no eviction trials we be held until June 1st, subject to change. 

INTEREST RATES – Mortgage interest rates have again fallen to historic lows, making now an opportune time to purchase or refinance an existing mortgage. If your current interest rate is in the 4% range or higher, you should definitely consider refinancing. The fixed rate on a thirty-year conventional mortgage is 3.295%. For an FHA insured loan, the rate is 2.875%, and the VA rate is currently 3.125%. With the government now printing trillions of dollars to rescue the economy, it is only a matter of time before interest rates will start to climb. 

David Gerke

Broker