What’s the Latest News From the Federal and State Economy?
Here’s an update on the economy from the federal level down to the state level.
Most of the benefits of the $2.2 trillion stimulus package that Congress passed earlier this year in response to COVID have now expired. Congress is now adjourned and they’re potentially going to negotiate a new package, but in the meantime, four executive orders were recently signed that you should be aware of. Here is what they entail and how they’ll affect you:
1. Unemployment benefits. Unemployment benefits went from $600 a week down to zero as the funds expired. Now they may go back up to $400 a week based on what state you live in until something more concrete is passed by Congress.
2. Evictions. There is a moratorium on evictions in some states based on certain metrics that you would have to check with the HHS Department and the CDC to learn more about.
3. Postponed student loans. The delay in payments was set to go through September 30, but a three-month extension has been authorized. So if you have student loan debt, your first payment won’t be due until January 2021.
4. Payroll taxes. If you make less than $104,000 per year, you’re eligible to suspend or defer payroll tax on your paycheck through sometime next year.
According to the Mortgage Bankers Association, 3.8 million homeowners in America are currently in mortgage forbearance. The numbers here in Arizona have begun to plateau, but on a national level, that is a huge number. If you know of anyone who has been furloughed or is otherwise experiencing financial difficulties and would like to know what their options are, we’d be happy to help.
“The Arizona market will likely continue to be one of the strongest housing markets in the country.”
There is some good news on the state level, however. The market is on fire right now; supply is very low and demand is sky-high thanks to people moving here from states like California. Here are some of the stats from our Arizona market:
1. Appreciation. The annual appreciation for 2020 is 12.8%, which is huge when you compare it to 2005, when the market went up extremely fast—the annual appreciation then was 26% (before the market came crashing down).
2. Affordability. If you’re a family making the median income in Arizona ($72,300), you should be able to afford about 60% to 75% of what is still selling in our market today.
3. ,Monthly payments. For the average homeowner in 2020, the average monthly payment is 30% lower than it was in July of 2006.
All in all, affordability is very good right now. We don’t currently have much of a bubble, but we’re not sure how long these trends can continue. At any rate, the Arizona market is very strong at the moment. I would argue that because of our increase in demand from the population influx and job growth, we’ll likely continue to be one of the strongest housing markets in the country.
If you have any questions about the market or need assistance with buying or selling a home, don’t hesitate to reach out to us. We’re here to help you.