Eviction Looms

If you ask a realtor about the housing market, they probably don’t have any time to answer you because they are working on too many deals. That’s how hot the housing market is right now, with plenty of people doing their best to get out of cities due to the corona virus. Although, renters are staring at the darkness that looms ahead, unless more people get back to work. Many people received a grace period for paying their rent once the virus hit, but this was only for a matter of months, depending on where they lived. The federal CARES act, as stated by KSL.com, was providing qualified people with $600 a week, also came to a close, however, there are still people that are not in work. If people cannot pay their rent, they get evicted, and if people are not working OR paying rent, the gears of the economy will begin to work much less smooth. For people that rent out full homes or parts of homes to pay a mortgage, they are also heavily affected. If less people are paying their mortgage, the housing market will drop, just as how it did in 2008, when mortgage-backed banks were handing out mortgages that they knew were absurd for people. This is a lot of information that seems unrelated to the stock market, but what happened when the housing market collapsed in 2008? The stock market went down right with it. Now I will not say that the market is guaranteed to drop once the evictions start piling up, especially after the resiliency it has shown through the pandemic. But I am saying that dark days could be ahead once more evictions begin to show up all at once.

-Darnel Shillingford

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