A report from Go Banking Rates. "The pandemic has caused people to slow down and rethink their approach to the homebuying process, said Rebecca Brooksher, an agent with Warburg Realty. 'Everyone has a new perspective, so you are less likely to find the pushy broker or the buyer who will overbid because it’s the perfect house,' she said. 'Everyone is on their best behavior. People are grounded and know their priorities.'"

"'There are certainly prospective buyers who were actively scouring the market pre-pandemic that have now endured severe financial hardship, and may be forced to hold off on buying until they recoup funds that have been lost,' said Jeremy Kamm, an agent with Warburg Realty. 'The demographic of first-time homebuyers has likely shrunken to a certain extent, and therefore there is that much less competition, i.e. room for opportunity.'"

"As competition shrinks and real estate inventory rises, homebuyers will have the upper hand. 'As inventory that appeals to these buyers begins to increase as restrictions are lifted and business resumes, those buyers that remain active and interested will hold much of the bargaining power,' Kamm said. 'There will be opportunities for great deals to be made with sellers who understand the new environment that we are in, and are genuinely realistic about selling their homes.'"

"In addition to having more realistic expectations, some sellers may give great deals to new homebuyers out of desperation due to their own changed financial circumstances. 'First-time homebuyers may run into sellers that must sell to get their cash out,' said Brett Ringelheim, a licensed real estate salesperson with Compass. 'In these scenarios, the buyer might be getting a better deal due to unforeseen circumstances that occurred in the seller’s life.'"

"In addition to low mortgage rates, buyers may be able to get better loan terms due to the smaller pool of buyers. 'Lenders will be more likely to negotiate their fees and costs when issuing loans because there is a lower number of qualified buyers this year compared to others,' said real estate attorney Rajeh A. Saadeh."

"'The pandemic is making it easier for first-time homebuyers to find the right house,' said John Castle, a realtor with Keller Williams. 'The demand for short-term rentals has collapsed. Consequently, a large number of condominium apartments have come on the market, and condominium prices in the most expensive cities are down substantially.'"

From Realtor.com. "As more people struggle to find their footing amid financial and economic uncertainty around the COVID-19 pandemic, many prospective first time homebuyers could be dipping into their down payment savings to cover their everyday expenses. Because of this, millennials — who make up the majority of all mortgage originations — may find their dreams of homeownership delayed until long after the coronavirus situation is under control."

"In fact, the average millennial would take 9 months to recoup a single month’s expenses that were taken out of their savings. If millennial renters are forced to dip into their down payment savings for several months, their transition to homeownership could be delayed by years."

"Adding to homebuyer challenges, some lenders are tightening their lending criteria by requiring higher credit scores and minimum down payments for certain types of loans. Major banks have recently changed their criteria for home lending by requiring borrowers to secure 20 percent down payments, significantly higher than the millennial median down payment of 8 percent. The 20 percent wall is likely too far out of reach for many prospective homebuyers, especially first timers, meaning these buyers will have to look for supported loans such as FHA, VA, USDA or Fannie and Freddie loans. The national median listing price in April was $320,000; a 20 percent down payment would be $64,000."

"Even though San Francisco has the highest millennial incomes in the country, it also has the highest expenses, primarily due to the very high cost of housing. Therefore, saving money becomes even more challenging in that market. In addition to the tight balance of income and expenses, homeowner hopefuls in these markets also face listing prices often much higher than the national rate. Eight of the top ten toughest markets had a median listing price higher than the national price of $320,000 in April."

"Moreover, if more major lenders increase their minimum down payment to 20 percent, millennials in San Francisco who were aiming for a target of 10 percent would need to save for an additional 16 years to meet that new lending criterion."

The Arizona Republic. "Banks across the nation felt headwinds even before the coronavirus pandemic hit, and a new, more rigorous accounting rule isn't helping. Banks could face eroding profits on a scale they haven't seen since the Great Recession. The October-December report marked a second straight quarter of declining profitability. Then the coronavirus pandemic hit, pushing the nation into a recession and raising the specter of loan delinquencies, defaults, bankruptcies and other fallout."

"Profits already are tumbling. Three of the nation's biggest banks – Chase, Wells Fargo and Bank of America – reported combined net income from January through March of about $6 billion, down from about $21 billion in the same period one year earlier. The economic ramifications of the coronavirus outbreak weren't fully felt in the first quarter. The impact for April through June will be larger."

"Many banks have started to adjust their earnings lower, reflecting a new accounting standard that requires them to estimate credit losses over the lifetimes of their loans, not just as losses accrue. It's a big change that will require executives to factor in future losses under various scenarios and incorporating many factors."

"For the first quarter of 2020, Chase, Wells Fargo and Bank of America included roughly $17 billion in combined provisions or charges for credit losses, well above the $3 billion or so they had reported one year earlier and explaining much of the profit erosion."

The Star Advertiser in Hawaii. "'I’m seeing more interest in single-family homes. Some buyers want more space, and many are finding that condominium maintenance fees are pretty high, even in the old buildings,' said Margaret Murchie, a Coldwell Banker real estate broker who is based out of the Diamond Head Kahala office."

"Sales will pick up as more inventory becomes available, she said. However, whether pricing holds will depend a lot upon whether Hawaii’s high unemployment rates and weak economy cause too much inventory to come into the market at once, Murchie said. 'If the economy doesn’t improve, people who are laid off or furloughed will think about moving. We could get such a glut of inventory that prices go down,' she said. 'We’re not seeing it too bad yet, but in the midst of the uncertainty, we are seeing it, depending on the seller’s circumstances. Some buyers are asking for concessions.'"

From Socket Site in California. "With the number of homes newly listed for sale in San Francisco having outpaced the number of purchase contracts that were inked for the eighth week in a row, there are now 1,000 homes listed for sale across the city. That’s 40 percent more inventory than at the same time last year, another 9-year seasonal high, and within 4 percent of hitting a 9-year high in the absolute (keep in mind that inventory levels typically don’t peak until October)."

"The percentage of listings which have undergone at least one official price reduction has been ticked up to 20 percent, which is five (5) percentage points higher than at the same time last year."

From Bisnow. "In dozens of interviews last week, owners of retail, office, multifamily and industrial properties across the country told Bisnow that early June rent collections were largely keeping pace with April and May, despite fears that this month would be when the country’s unprecedented economic decline started showing fully in rent collections."

"Apartment owners are faring far better, reporting collections anywhere from just below 90% to nearly 100%. But most of them acknowledge it is not because the economy is healthy, but because of the expanded unemployment benefits from the Coronavirus Aid, Relief, and Economic Security Act passed in March. Those benefits expire in July."

"'That stimulus is going to die down in the next four to eight weeks, so hopefully those jobs that are coming back are going to replace that spending in the economy,' said Sean Burton, the CEO at CityView, which owns more than 6,000 apartments, mostly in California."

"Acumen Cos. Chairman Abiud Zerubabel, whose company owns over 1,000 apartments in the D.C. and Los Angeles markets, said the firm’s rental income is down about 11%. He said this figure, while still below the 25% he had initially forecast, has worsened over the last month. 'In April, nobody asked [for help], they may have been unable to pay but were not vocal about it,' he said. 'Now, everybody is vocal about where they stand and the challenges they have.'"

"The renters asking for help now, Zerubabel said, are a combination of service industry workers who have lost their jobs, and young professionals who are looking to terminate their lease and move back with their parents. He said more renters have sought to terminate leases in expensive D.C. neighborhoods like Shaw or Columbia Heights, as they now look to find a more affordable option."

"'We’re hearing people saying, ‘I’m going to have to move back to my parents’ house or into a more affordable neighborhood,' Zerubabel said. 'We’ve seen a number of people raise their hands and ask for deferment or an early termination of their lease if they want to move out.'"

"The same is true in high-cost markets like New York and the Bay Area, where long commute times to downtown offices no longer feel like a fact of life as more companies tell workers they can work from home as long as they want. As a prolific multifamily owner in the thick of the Bay Area, Anton DevCo is seeing firsthand some of the changes possibly coming to the region. A handful of residents at the company's 394-unit Menlo Park community left, starting the day after one of the city's largest employers made that an option, Anton DevCo Managing Partner and Chief Investment Officer Trisha Malone said."

"'Right now, something we’re seeing in the Bay Area is the effects of Facebook’s work-from-home policy,' she said. 'We’re seeing an uptick in tenants who are paying the breakage to get out of leases and relocate. There's a lot of them moving out of state.'"