Advantage Credit, Inc.’s Post

How did homes get this damn expensive? The easy answer is "supply and demand." But with my colleagues Jason Kirby and Mark Rendell, we delved deeper into the affordability crisis. A bunch of factors are working against potential homebuyers (and renters, too): material costs, regulatory red tape and terrible productivity in the construction industry. More in the link.

We lack an effective and meaningful national housing policy thus it is up to local and statement governments to address the affordable housing crisis.

How do you make housing affordable to first time buyers? From what I understand the two biggest obstacles are the large down payments and qualifying for a mortgage. The easiest way around these problems is to lower the purchase cost. That seems to be the problem facing governments. What if you could delay the property cost for a ten year period and just pay for the house. The federal and provincial governments have made surplus property available for affordable housing. When you deduct the land cost it lowers the amount of the down payment and mortgage thus opening option of home ownership to more buyers. In ten years the earning power and property equity should have increased to the point of adding the property costs to the mortgage should not be a hardship. If the house is sold before the ten year period has expired then the property cost would be due and payable. To keep the neighbourhoods uniform and keep cost in check design basic three bedroom starter homes in the fourteen hundred square foot range that fit on a forty foot frontage lots. This plan is a variation of a affordable housing project that the Robarts government put into practice in the seventies that was administrated by CMHC.

The cost of housing has been a hot topic among friend and family circles (for too long). Harvard Joint Center for Housing Studies' State of the Nation's Housing report was recently released. A few topics that stood out to me: ▪ Affordability, interest rates, and lack of urgency (potentially due to market timing) ▪ Parents' role in the mortgage process, especially as 'starter' funders ▪ Impact of climate change on existing housing stock ▪ Need for real solutions on the supply and demand side; ineffective solutions aren't making the intended changes ▪ Unhoused population continues to grow, partly due to the migrant crisis #harvardhousingreport

An important read.

From our friends at We Know Boise - a great article reviewing the current market in the Boise area. “With rising home prices and still-elevated mortgage rates, buyers are prioritizing quality. They're seeking updated, turnkey homes and avoiding properties with deferred maintenance or needing significant renovations. Location is also important, with homes far from amenities or requiring long commutes seen as less attractive.” If you’re considering selling, it is always important to speak to an agent about the best improvements to make prior to listing, to attract the most buyers and sell for the most money possible. Buyers are out looking, and due to the higher costs of homes & interest rates - they are choosier, and looking for homes that are move in ready, with the least amount of work required.

The picture for first homebuyers in our capital cities continues to be disheartening as supply and interest rates create challenges. AMP's Shane Oliver is on the money about the need for increased housing stock to start to improve the picture.   The assumption that first homebuyers only want to live in inner city locations fails to account for the many new families and couples who have helped to establish the new suburbs in our growth areas. And with Millennials having children later, and an influx of new migrants, greenfield development offers an ability to increase supply and enable more Australians fulfil their dream of home ownership.   We're proud to have permits approved for dozens of new townhouses in areas including Lara, Clyde North, Cranbourne, Tarneit, Sunbury and Wollert and to have just completed 126 townhomes in Deanside. Bringing supply to market is good news for homebuyers. #propertydevelopment #greenfield #firsthomebuyers #oreana

🚨Housing #Starts Surpassed Expectations With Single-Family New Construction Rising To Highest Since April 2022 🏡 While I expect some downward revisions to the February estimate, it has always been abundantly clear to me that low levels of housing inventory would continue to fuel the supply of new #homes. Despite rising #mortgage rates, demographic factors as well as rising #inflation-adjusted #incomes and #wealth continue to support #housing demand. At the same time, the stock of existing homes that is currently available for sale remains 37% below pre-pandemic levels. The persistent housing shortage has supported growth in house prices. Homebuilders have been happy to slowly chip away at the current housing deficit – despite significant headwinds. https://lnkd.in/g9khQ9X9

California Housing Market Slows Down but Home Prices Soar Contact me to discuss the latest scoop in real estate! #realestate #realtor #dreamhomes #homebuyers #realestateagent #homesearch #realestateinvesting #housingmarket #Mortgage #HomeLoans