A report from the Wall Street Journal. "The central bank’s decision to buy a nearly unlimited supply of government-backed mortgages has helped calm skittish markets and ensure that 30-year home loans remain available. But the market for loans in which the government doesn’t shoulder the risk is coming undone. Investors are abandoning that market, starving the lenders that extend mortgages to borrowers who don’t qualify for conventional loans. Borrowers already are struggling to line up financing that was readily available just weeks ago."

"The mortgage market seized up in March when a glut of refinancings collided with a broad selloff across a range of asset classes. Investors suddenly demanded more yield to own mortgage bonds after accepting paltry returns for years. Nonbank lenders, which originate almost 60% of U.S. mortgages, rely on lines of credit from banks and others to fund their loans. These warehouse lenders, as they are known, recoup their money when the mortgage lender sells the loan to an investor. But warehouse lenders often pull back as times get tough, and right now they are being more choosy about which loans they will fund."

"The market turmoil has battered investors that loaded up mortgages that lack government backing, known as nonagency mortgages. Fund managers have faced withdrawals, forcing them to sell assets to raise cash and reducing the pool of buyers for these loans. Mortgage real-estate investment trusts—publicly traded companies that typically use leverage to boost returns—had been a growing presence in the market for mortgage-backed securities. Now their banks are asking them to put up additional collateral for their loans in margin calls."

The Salt Lake Tribune in Utah. "Last month, prominent business leaders announced a $20 million investment into refurbishing 100 affordable homes. Part of that could be converted to short-term rental stabilization, but it also may be even more important long-term if landlords can’t make ends meet and have to start selling properties. None of these ideas will alleviate the problem, but they could keep it from spiraling into something much worse."

"'We need to do everything we can,' said Howard Headlee, president of the Utah Bankers Association, 'to keep this contagion from getting into our real estate market and housing market.'"

The Missoula Current in Montana. "'We’re seeing a few more instances of sales coming apart due to various reasons,' said Brint Wahlberg, a director with the Missoula Organization of Realtors. 'It seems like there’s a higher amount of failed sales, and they’re putting houses back on the market. In some cases, it sounds like it’s due to the pandemic and in other cases, it’s economic concerns.'"

"Mike Nugent, the managing broker at Berkshire Hathaway Home Services in Missoula, said other aspects of the housing market continue to function, including lending, though there may be signs of nervousness there, especially regarding loans targeted to buyers with a lower down payment. For qualified buyers, Nugent said, the lending process may be getting a little easier, though options for buyers with a lower credit score may be fewer than before."

From DS News. "'The housing market came into this turmoil in a strong position, with a very low supply of homes for sale and record levels of home equity,' said Redfin Lead Economist Taylor Marr. 'Home equity can function as a rainy day fund. Homeowners can weather a storm of falling home values without the pressure to walk away from their home. They can also better handle a loss of income if they can tap into their equity with a home equity line of credit (HELOC). This stabilizes the market, preventing an influx of supply from foreclosures, which would further cause prices to fall in a vicious cycle.'"

"Los Angeles, Miami, and San Diego have the highest risk, based on a late March 2020 analysis by Redfin economists. Those that are hit the hardest overall are also likely to be more at risk of a real estate downturn."

"'Some cities have factors that make them more susceptible to losing their footing and are likely to be hard hit,' continued Marr. 'Amidst rapidly rising layoffs, it will be especially difficult to sell a home in these markets, and yet buyers will likely find limited options as sellers delay listing, leaving the housing market in a standstill. Federal support will help cushion the fall, but in these areas it will take significantly longer to recover.'"

The Real Deal on New York. "It’s sink or swim time for the Pool House. Six Sigma’s West Chelsea condo project that’s been treading water as its partners splashed about is heading for bankruptcy auction. A federal bankruptcy judge in Manhattan last week gave the green light for the sale of the boutique conversion project — where each unit will include a pool — at 435 West 19th Street, court records show. Court records show the project has a projected sellout of $55 million. The site’s secured creditors have claims against the property totaling $40 million."

"The developer, headed by founder Jason Lee, first filed for bankruptcy in the summer of 2018 after his lenders, Soho-based Churchill Real Estate Holdings, filed to foreclose on the site. Churchill principal Justin Ehrlich told The Real Deal his goal is to be made whole by the auction. 'We are just the lender. I hope we are paid off in full,' he said."

The Globe and Mail in Canada. "A stillness has descended on the real estate market of Toronto and surrounding areas as citizens confront the COVID-19 pandemic. Andre Kutyan, a real estate agent with Harvey Kalles Real Estate Ltd., says sales volumes have been on a steady slide. But he has listed three properties in the past week because the owners, for various reasons, need to sell. 'The reality is that people are not listing unless they have to.'"

"'I think this is different. I think it will be a longer-term recession,' says John Lusink, president of Right at Home Realty Inc. 'As people get laid off, that’s a different kind of financial crisis. They won’t qualify for a mortgage.'"

"Mr. Lusink is also keeping an eye on sales agreements that have been signed in recent weeks but have not yet closed. He expects banks and other lenders to scrutinize deals carefully. If they become concerned about the security of the buyer’s income, the lender may not be willing to provide a mortgage, he says. Things also get tricky for highly-indebted consumers who have purchased a new home but then run into trouble if they can’t sell their existing one or an agreement falls apart."

"'Not many buyers can hold two mortgages or qualify for a bridge loan,' Mr. Lusink points out."

"Duncan Fremlin, a real estate agent with ReMax Hallmark Realty Ltd., is informing his clients that a recent snapshot of the market showed listings rising as sales dropped. The number of sales above the asking price also declined during that window. 'For the first time in decades in Toronto, selling a house in a good neighbourhood within a reasonable period of time is not a given. The risk factor is high,' he says. Mr. Fremlin adds a grim warning: 'with so much uncertainty in the world, the bank appraisals may not match what the buyer paid.'"

From Swiss Info. "The Covid-19 crisis could spell an end to the previously rosy situation for Switzerland’s real estate investors. Investors in residential property look back on a successful 2019 both in terms of value increase and of returns. Forecasts for the current year were optimistic until recently, for both property owners and renters."

"The Swiss National Bank’s negative interest rate policy led to a surplus of apartments and other rented out office space, which in turn drove down rents. Then the coronavirus crisis turned everything upside down. 'All the economic forecasts were wrong,' Donator Scognamiglio, chief executive of the Zurich-based real estate consulting firm, IAZIexternal link."

The Daily Mail on the UK. "David Cox, of ARLA Propertymark explained how tenants and landlords are facing 'financial ruin' amid the virus crisis. Mr Cox told MailOnline Property: 'Tenants face financial ruin amid mounting rent arrears and crippling debt if they fall through the gaps of the Government's current provisions. This is particularly the case for those who work in the gig economy or who are self-employed. 'The knock-on effect of this is that landlords are not receiving their rent and are falling into financial ruin, which ripples out across the economy.'"

"It means everyone in the property chain is affected if a tenant is unable to pay their rent, from the tenant to the landlord who may not be able to pay their mortgage if no rent is coming in. Mr Cox explained that by stepping in early on, it means everyone in this chain can benefit. For everyone's sake, the Government needs to pay people's rents if they are impacted by the coronavirus. It is what the welfare state is there to do and the Government needs to do the right thing.'"

The Vietnam Express. "Landlords are reporting plunging revenues as occupancy drops and struggling tenants seek discounts over coronavirus impacts. For almost two months, Ha has been losing VND40 million ($1,700) a day from the 30 serviced apartments she rents out in HCMC. This month, she has no tenant despite lowering prices to half or a third of the price tag before the novel coronavirus epidemic hit."

"Last year, her apartments were almost always fully occupied by a variety of Vietnamese and foreign tenants, but the situation began to change towards the end of January when Vietnam started recording its first coronavirus infections. 'I am helpless. All I can do is to be patient and wait for the pandemic to pass,' she said."

"Nguyen Loc Hanh, CEO of HCMC-based real estate firm Ngoc Chau A, estimated that rent revenues are falling by an average of 50 percent in the market, and the figure could go up to 70-80 percent if the pandemic persists. Landlords who have borrowed money to invest in apartments will be hurt the most as cash flow drops, and the best solutions for them is to accept discount proposals by tenants to avoid zero revenue, he said. 'It’s better to lose some than to lose all,' he said."

The South China Morning Post. "Hong Kong home prices recorded their steepest drop in 15 months in February, and are expected to decline by up to 20 per cent from a peak in June 2019 by year-end amid the coronavirus pandemic. Derek Chan, head of research at Ricacorp Properties, added that the downtrend will persist into the second quarter. 'In late February and early March, the turnover edged up because more homeowners slashed prices. So the drop will be even bigger,' Chan said."

The Sydney Morning Herald in Australia. "The news from CoreLogic that residential property values continued to climb in March looks positive at first blush but a deeper delve shows signs are starting to emerge that this market is running out of steam - and fast. The bottom line is that all bets are off when it comes to predicting what will happen to house values over the coming year. Until a month ago economists were looking for gains of between 5 and 10 per cent in values this year. At best this will evaporate. At worst prices could fall 20 per cent, according to AMP chief economist Shane Oliver."

"'Prices are likely to fall as unemployment rises, triggering debt servicing problems for some against the backdrop of very high household debt levels and high house prices in Australia and depressing property demand even for a while after the shutdowns are relaxed,' Oliver says."

"Additionally those small to medium sized company owners who are typical residential property investors will be looking for liquidity. They will also be feeling the pinch if their rental tenants are unable to meet monthly payments. And after six months they will need to start paying interest again. Bank largesse won’t continue indefinitely."

From Stuff New Zealand. "There could be 20 per cent fewer residential properties sold this year than in 2019, Corelogic predicts - and real estate agents could drop out of the industry as a result. Sales have largely gone on hold during the level four lockdown period but commentators say it is unclear what will happen when the restrictions lift. Corelogic head of research Nick Goodall said there was a spike in new listings of properties for sale just before the lockdown was announced."

"He said that could be a sign that people had already realised there would be an economic impact from Covid-19 and were worried about how their jobs and income would hold up. There could be more listings again when the lockdown finished, he said. 'The key question is are there the buyers out there to purchase the property?'"

"He said it seemed that prices would drop but it was hard to predict the extent of the fall. 'When we come back to some sense of normality and the economy is getting going again, how many people are desperate or keen to sell the properties and are they willing to accept a lower price?' The longer Covid-19 disruption continued, the more nervousness there would be, he said. There was likely to be downward pressure on rent prices, too, he said. 'People who bought recently would have bought at relatively high prices and have a lower equity position.' He said it seemed likely that some small-scale property investors might look to sell off one of their properties to raise some money."