Evo Haven: The Solution to the Housing Crisis
Moving forward, in 2021, we can see the real estate market go through surging prices, scarce inventories, and excessive new home construction, which leads us to question whether there is another housing crisis on the cards. To get a clearer view of the housing crisis, let’s dig into some factors that work to solve this problem.
Higher Lending Standards
Many of the country’s largest banks and mortgage companies were taken down by loose mortgage lending practices. It caused Congress and federal regulators to adjust how mortgage lending is controlled. Getting a mortgage has become more transparent as not just everyone can get the loans now. Those looking to get loans will have to go through severe income and assets evaluation. Those who do not conform to these rules will have to bear harsh penalties.
These new standards have made the housing finance marketplace more stable and secure. Therefore, a housing crisis can be resolved by these protocols.
The Cushion of Homeowner’s Equity
The difference between your home’s current market value and the amount you owe on it is known as equity. It is the portion you already own. Equity can be a reason why you stay in your home. Because the prices have been unstable, if they increase again, your equity will increase too. It saves homeowners from the housing crisis hits.
Price Growth Will Slow, Not Stop
The real estate industry was expected to tumble. However, the sales boomed, which was surprising after the pandemic hit us. Many young buyers took advantage of the low mortgage interest rates, and the sales were thriving by mid-April. Existing home sales reached their highest level in 14 years throughout 2020.
This run of immense price increases will come to an end after some time, but the stress will remain on entry-level homes in most markets until new home construction relieves it.
Pandemic Mortgage Forbearance
In the house market crash of 2007, the housing supply entered into areas with deteriorating prices and unemployment because of foreclosures but prevented recently foreclosed mortgagors from re-entering the marketplace as buyers. The Federal Reserve believes foreclosures, when there is high unemployment, can weaken prices, making the homeowners go into deep negative equity.
However, to stray from a housing crisis like the one in the Great Recession, the forbearance programs allowed homeowners to delay their monthly mortgage payments. And they didn't have to suffer any penalties either!
Conclusion
No one can say for sure what the near future of real estate looks like. However, EVO HAVEN wants to end the global housing crisis by developing affordable and sustainable housing.
Meanwhile, Evo Opportunity Fund is committed to developing energy-efficient real estate in Qualified Opportunity Zones by creating sustainable housing for all. Evo promises to utilize the radical tax breaks provided by Opportunity Zones. The timing for this opportunity is now.
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