Anticipating and predicting a change of direction in home prices is difficult at best. Many factors play into our market and are keeping a lid on home prices today.
Because home prices are now at levels not seen since 2003, home buyer's have anxiety (read the article here) and additionally I am seeing softer prices because there is a lack of acceptable inventory with fewer buyer's making their way into the market.
With a smaller inventory in relation to buyer's entering the market, how does the general home buying population find a home that meets their needs in this market? In this article I want to talk about the FHA 203k loan as a possible catalyst to provide a larger inventory of acceptable homes to buyer's.
Since the first of the year, I am beginning to hear more requests for information on the FHA 203k loan than at any other time in my mortgage career which began in 1991 and I think it is because it allows buyer's to purchase the "wrong home in the right neighborhood" (read more about the FHA203k loan here) which could help more buyer's find the right home for them. The 203k loan will help stabilize home values quicker than any other options available to the Government today. Additionally, more that 100 million homes in the US were built before 1990 and almost every one of these homes would benefit from some amount of renovation and modernization.
While we wait for a different inventory and more plentiful inventory to appear in the Real Estate Market, maybe the 203k loan is worth looking into. Call me if I can help.