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As a result of the problems encountered in 2007 and 2008, the emphasis has been, and still is, on a housing market recovery through an improving economy, restoration of home values, and protecting consumers against predatory lending.
Actions toward this end, include such things as:
- Placing Fannie & Freddie into a Conservatorship
- The Treasury investing in Mortgage Backed Securities
- Creation of CFPB with increased regulations
- FHA playing a larger role in home financing
- New low down payment loan programs
- Maintaining loan mortgage interest rates
All of these, along with some recent loosening of credit standards, have helped. For the most part, Home values have recovered to pre-2008 levels and the homeownership rate has steadily improved. So, what’s the problem?
People, who ended up renting as a result of the crash and initial tightening of lending rules, are now looking to get back to homeownership.
In addition, Millennials are also now making their way into the housing market. This places an increased demand for affordable homes.
Where do all these new potential buyers find these homes? It ain’t easy. According to Zillow, the number of homes on the market is declining at the fastest rate in 4 years.
Home shoppers today have 9% fewer homes to choose from than a year ago and the number of homes available continues to decline.
We did a great job of restoring home values, getting existing homeowners refinanced, and qualified consumers into available homes. All of that helped the economy and housing to continue to improve, but where do we go from here?
It’s time for lenders and Realtors to join forces to put some pressure on Congress to take a much closer look at housing in America.
Maybe if Russia hacked into the MLS they would. Seriously, we need to take a closer look at affordable housing programs to determine what can be done to increase the number of available homes and build new ones.
Housing may not seem as sexy a topic as health care and tax reform, but it’s no less important. As the economy goes so goes housing; as housing goes so goes the economy.
It’s time for the Industry and Congress to get together to take a long hard look at what needs to be done to keep housing, and the economy, moving in right direction.
