For many years, it has seemed that new home builders were ignoring first time home buyers to focus on the most lucrative demographics in the middle to high-end home market. […]
H.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) […]
For many years, it has seemed that new home builders were ignoring first time home buyers to focus on the most lucrative demographics in the middle to high-end home market. The housing market had made it apparent that in this post-recession time that prices are rising quickly and first time home buyers have been priced out.
Well, that seems to be a thing of the past. Not that the market is not seeing tremendous upside growth, but that home builders might be changing their target.
By spending years building homes for those with easy access to funds, less credit restraint, and high-end tastes they have created enough homes to meet demand while creating a shortage of smaller, more affordable homes. Reports are apparently shedding light on the fact that sales of medium size, single-family home sales have decreased up to 70%, while homes under $200,000 have increased dramatically.
As one would expect from any keen business person, one should follow supply and demand.
Statistics show that the job market has produced more income and the demand for home buying is there. Couple that with the fact that the number of sales units are decreasing and it becomes clear that the buyers are not willing or able to afford the larger, higher priced homes that have quickly become available via new home builds focused on the medium to higher end buyers.
Smart money follows the trends. The smaller, single family new homes market has been ignored for too long. It is time to build and profit from the clear demand of this overlooked market segment.
H.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) has lauded this bill as a significant step in creating more availability and removing road blocks in the obtaining of mortgage credit in the condo market.
The NAR and their nearly 140,000 members have been lobbying Congress for quite some time to encourage the passing of this legislation. The Association applauded the unanimous House vote back in February and was ecstatic upon the final approval by the Senate in mid-July.
NAR President, Tom Salomone was quoted expressing his relief in knowing that condo owners will now have fewer restrictions on obtaining FHA financing.
This bill will make the Federal Housing Administration’s process for re-certification less cumbersome and it also lowered the owner occupancy requirement rate from 50% down to 35%. The FHA will also be revamping its transfer fee policy it currently has in place. The new model will be far less restrictive and more in line with the current Federal Housing Finance Agency’s guidelines.
Finally, some relief is on the way for those in the condo market who have seen increased pressure brought on by rising prices, restrictive lending guidelines, and low inventories, Salomone went on to say.
This piece of legislation has done its job by removing the barriers of strict lending guidelines and putting the dream of home ownership back into the hands of deserving Americans.
First Time Home Buyers Are Being Targeted
UncategorizedFor many years, it has seemed that new home builders were ignoring first time home buyers to focus on the most lucrative demographics in the middle to high-end home market. […]
President Obama Eases FHA Concerns
UncategorizedH.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) […]