16 Apr Housing Market To Remain Shaky During Recovery
The housing market appears to be recovering but different markets will fair better than others during the recovery.
The overall message from this rather pessimistic idea is that while housing may be showing signs of life, the market is and will continue to be shaky.
For example, the condo and second home markets will not recover as quickly as the small, in-town home market will. The problem is the jumbo loans that are required to obtain these properties. Banks will only approve a condo loan if the building has a 70% occupancy rate, which is not the best news for new properties in the middle of sell-outs. Borrowers looking for a jumbo loan are going to have to front 30% to even be considered.
It’s not all negatives though. Saving money by “going green” with upgrades is a wise and feasible option. There are numerous government incentives and federal credits for energy-efficient heating and air-conditioning systems. The real value for sellers is that these upgrades will increase that value of your home. These incentives allow you to do this at a much cheaper cost. To me, this is a no-brainer for builders and homeowners alike. It is becoming increasingly evident that once the market does start its recovery, there will be certain things that consumers will want. One of them will certainly be sustainable and energy-efficient interiors and fixtures in their new homes. This is a theme we continue to see.