Real Estatin' The Facts Market News - 10/22/2021
Here's the weekly round-up of news. Check it out, save it for later, and/or share it with your friends. Enjoy!
Buying a second or third home is more popular than ever
Source: Bloomberg
With the rise of remote working, second homes are becoming a viable option for more buyers seeking a better work/life balance. Nearly one in five respondents to a Knight Frank Global Buyer Survey said they moved since the start of the pandemic and one in three said they were more likely to buy a second home as a result of the pandemic, up from 26% the prior year. Low interest rates on home loans, pandemic-era savings and a hybrid-work revolution have made it more feasible for people, not just the ultra-rich, to live a dual lifestyle. That fundamental change in where and how people live stands to infuse second-home markets, once reliant on weekenders and seasonal visitors, with greater demand for restaurants, retail and other amenities that make urban dwelling so appealing. Read more...
Lenders are courting self-employed again
Source: Housing Wire
Mortgage credit availability increased for the third consecutive month in September, but is still 30% below the pre-pandemic level, according to a report by the Mortgage Bankers Association. Much of the growth in credit availability has come from loans that cater to self-employed borrowers, who were left in the cold by most lenders during the pandemic. The MBA Mortgage Credit Availability Index overall rose by 1.5% to 125.6 in September, the highest level since May. The index benchmarks to 100 in March 2012; a higher number portends more mortgage credit availability. Read more...
Homebuyers using government loans struggle to compete
Source: Realtor.com
Government-backed loans have long been known to help low-income and first-time home buyers make low down payments on a home purchase. But these loans often come with several extra requirements that may slow the process and put some at a disadvantage in a fast-paced offer situation. Eighty-nine percent of sellers would be likely to accept an offer from a buyer with conventional financing, but only 30% would be willing to accept one using a Federal Housing Administration or Veterans Affairs loan, according to an April survey of real estate professionals conducted by the National Association of REALTORS®. Six percent of agents say their sellers would not consider an offer using a government-backed loan. Read more...
Rents post biggest increase since 2006
Source: Market Watch
Surging demand for rental units is pushing up prices with rents of primary residences jumping by 0.5%, the largest one-month increase since 2001. The end of the eviction moratorium in September may also have put pressure on rents to rise, housing analysts say. Home prices also have been on the rise as demand surges in the pandemic for housing. Real house prices have been increasing about 100 times faster than they did from 1955 to 1998. Read more...
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