We’re back after attending two excellent real estate conferences. Not surprisingly, the major concern permeating each was the future of housing finance and especially, what the real estate industry and consumers have to look forward to regarding down payment requirements.
At the NAR Midyear Legislative Conference in Washington, D.C., we held dozens of meetings with key multiple listing services (MLS) and REALTOR® Association executives. Their number one concern is how confident their members, as well as buyers and sellers, can be that the homes they buy or sell will be financed and closed.
This is understandable given the current challenges of financing home sales. However, issues today may look like child’s play compared to what could happen if certain measures proposed in Congress and the U.S. Treasury are enacted. Here’s what the real estate industry knows today:
- Rapidly changing credit and collateral standards over the last few years have reduced the percentage of homes closed in relation to the number of sales contracts written.
- The move-up market remains grid-locked without more first-time homebuyers.
- The May 19 Campbell/Inside Mortgage Finance HousingPulse Survey showed the proportion of first-time homebuyers in the housing market fell to 35.7% in April compared to 43.4% a year earlier.