Happy National Homeownership Month! If there’s one thing all of us in real estate understand, it’s the importance of home! It’s at the center of what we do, and this June, we can expect more people looking to make their homeownership dreams come true!
With the market remaining hot as the summer sun, we want to make sure that you – our lender, banker, and real estate attorney friends – are prepared to help your clients feel at home in our great state of West Virginia. Of course, the West Virginia Bankers Title team is here to help you succeed at all the great work you have done and will do!
We’re celebrating National Homeownership Month with you…all June long!
Bob Drummond, Vice President/Agency Manager of West Virginia Bankers Title
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Celebrating 20 Years of National Homeownership Month |
It's time to improve the housing market for buyers. In 1995, National Homeownership Week was created as a strategy to increase homeownership in the U.S., and in 2002, it was expanded to the entire month of June. For the last 20 years, National Homeownership Month has been a time for HUD and FHA to refocus their efforts to help people achieve and maintain homeownership and enjoy the stability and wealth creation that comes with it. During the month of June and beyond, these organizations work to increase the housing supply, including affordable housing, removing barriers to homeownership, serving communities of color, modernizing home appraisals, preventing foreclosures and more.
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Housing Inventory Grows for First Time in Three Years |
We’re seeing a steady increase in housing inventory with new sellers listing their homes and buyer demand settling down. What are the main factors driving this increase? Sellers feel more confident to list now more than when COVID vaccines were just rolling out, and high housing costs are lowering buyers’ demand. Still, properties are selling fast and at an all-time high median price of $447,000.
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Buyers are Making Concessions to Nab a Home. Here’s What They’re Doing |
The housing market remains a highly competitive space, but today’s buyers are willing to make sacrifices to cut costs or land their dream home. A survey from Bankrate.com found that 58% of U.S. adults were willing to find more affordable housing, especially Gen Z and millennial buyers. Homebuyers are considering moving to new areas, and twenty percent said that they would move farther away from family and friends. Others said they would purchase a fixer-upper, waive inspections and enter bidding wars to secure the keys to a new home.
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More modern and efficient appraisal processes could be developed to simplify and speed up the origination process. Lenders see appraisal modernization as a top priority and are investing in non-traditional appraisals and inspection-based appraisal waivers. Lenders believe traditional appraisals take too long, and a more modern approach could enhance appraiser capacity and lower borrower costs.
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Adjustable-rate mortgage (ARM) loans have been rising in popularity. According to an analysis by Redfin, a typical homebuyer could save roughly $260 per month by taking out an adjustable-rate mortgage. Monthly payments for buyers who took out ARM loans were significantly lower than payments for buyers who took out 30-year fixed mortgage loans. However, ARM loans don't come without risks. Mortgage rates can increase with loan resets, and borrowers may face fees or penalties if they refinance or pay off their loan early.
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We’re all well aware that technology is advancing and being incorporated into every aspect of our lives, but for professionals in real estate, it’s important to find the right balance between technology and personalized service. This article from RisMedia says technology fosters human connections, streamlines processes, and that algorithms can’t replace personal service, suggesting that staying up to date with the latest technology is crucial to your success in the real estate industry.
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We have good news for home buyers! More houses are coming on the market. Active listings rose five percent during the week that ended May 14, the biggest jump since March 2019. A steady increase in inventory could ease homebuyer competition; however, buyers are facing competition from investors who are purchasing residential properties to rent out to tenants.
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Ways to Celebrate National Homeownership Month this Year
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Homeownership is important and so is the role that you play in it as a real estate professional. It helps people plan for their future, increase their wealth and feel like a part of their community. Celebrate and do your part to increase homeownership this year by hosting an event and educating potential homeowners, getting involved in your community, taking certification courses on equal opportunity, or creating informative graphics and connecting with people on social media. By doing these things, you market yourself as a knowledgeable resource and someone who is willing to help and support your existing and potential clients.
It's important to showcase your expertise and the causes that you support, especially now that summer is here in this competitive market. The West Virginia Bankers Title team is here to help you in any way we can! Together, we can help increase homeownership this month!
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