Posts tagged real estate trends
FHA Plans to Back More Condo Loans - What Will the Effects Be?

The FHA plans to back 60,000 additional condo loans each year on top of the roughly 16,000 it already backs. So what exactly does that mean? In short, an FHA-backed loan only requires a 3.5% down payment and they often lend to people with lower credit scores. Both of these things combined will allow more first-time home buyers to enter the market because they don’t need to save as large a down payment or build up their credit history. This is especially true in larger cities across the US where home prices are rising and preventing many from entering the market. Read this article from the Wall Street Journal to discover what experts are saying the pros and cons of this policy are.

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Boston Luxury Condos: Rising Prices as Number of Sales Drops

When you take a look at the luxury condo market in Boston, there is no sign of prices stagnating or dropping anytime soon. A recent market report from the second quarter of 2019 showed that the average sale price of luxury condos in the downtown area is up 22.8% annually and the median sale price is up 21% annually. The report attributes the rise in prices to a decrease in the number of sales which is down 14.9% annually. To read more, click here.

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A New Type of Rental Investment

Roofstock, a California-based company founded in 2014, is offering people a new type of of investment opportunity in which accredited investors can buy partial ownership in single-family rental homes. Since the crash more than a decade ago, people have become more interested in owning rental properties, but that is often accompanied with many headaches being a landlord. Roofstock takes those headaches out of the equation by acting as the property manager and investors are able to enter the rental ownership market at a lower cost. To read more about this interesting idea, click here.

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Boston's Housing Crisis Is Attracting Investors

Boston is facing a major housing crisis due to the lack of housing supply. Rents are on the rise not just in Boston, but in the suburbs around Boston as well and vacancy rates are around 3%. While it is a bad situation for renters in the area, investors from all around the country are looking to take advantage of the market by purchasing multifamily properties. To read more, click here.

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Can Millennials Afford Homes?

Millennials are in quite a different position than their parents and grandparents were when it comes to the prospect of buying a home. A recent report showed that in 1975, it took 9 years for someone earning the median salary to save up for a 20% down payment on a home (assuming they saved 5% of their income per year) and now it takes 14 years. This change is even more extreme in well-known cities across the US - 43 years in Los Angeles, 40 years in San Francisco, 36 years in New York, and 30 years in Boston. There are many reasons why this is the case such as a scarcity of housing and restrictive zoning laws. To read more, check out this article that summarizes Unisom’s report about the increasing gap between income and real estate prices.

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A Good Month for Home Building

After a few down months at the start of 2019, the construction of housing finally saw an uptick in April. Housing starts rose 5.7% across the country and “building in the Northeast increased at the fastest pace in nearly two years.” Take a read through this article for more commentary on these statistics.

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