Homeownership Boost

October 17, 2023

THE BIG SPLASH

Homeownership Boost

What you should know

The White House has unveiled new housing initiatives, including policies to boost homeownership by allowing income from accessory dwelling units (ADUs) to be considered in mortgage applications.

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  • Homebuyers can leverage income from ADUs, expanding mortgage lending for U.S. Tribes and launching a USDA pilot program for alternative eligibility criteria.

  • HUD's new policy enables the inclusion of rental income from ADUs in FHA-insured mortgage qualifications, promoting affordability and generational wealth.

  • Updates to the 203(k) Rehabilitation Mortgage Insurance Program are under consideration to increase funds for renovations and repairs.

  • USDA awards $9 million to Native American Community Development Institutions for homeownership on Tribal Lands.

  • The VA introduces a home retention program for veteran borrowers who are behind on their mortgage and don’t qualify for traditional options.

A SCOOP OF MARKET DATA

The number you should know

4,100,000

Housing sales in 2023 are projected to plummet to their lowest since the 2008 real estate bubble burst, with only 4.1 million existing-home sales expected, according to the National Association of Realtors.

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  • Decades-high mortgage rates and a lack of inventory have made housing less affordable than 16 years ago.

  • The average mortgage rate has more than doubled since last year, adding to the cost of home ownership.

  • Over 90% of existing homeowners, locked into rates below 6%, are reluctant to reenter the market with rates nearing 8%.

  • Prospective buyers are adopting a "wait-and-see" approach, anticipating a drop in mortgage rates.

A SCOOP OF INSIGHTS

Something you’ll learn

Homeowners can significantly devalue their homes within a year by neglecting maintenance, over-personalizing, and other missteps, warns a top real estate agent.

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  • Ignoring essential repairs and maintenance issues, leading to more significant, costly problems over time.

  • Making highly personalized renovations or design choices that limit the home's appeal to a broader market.

  • Neglecting the exterior and curb appeal, discouraging potential buyers.

  • Poorly executed DIY projects resulting in subpar workmanship and potential future repairs.

  • Failing to make energy-efficient improvements, making the home less attractive in an environmentally conscious market.

  • Adding unpermitted structures, leading to legal and financial troubles.

  • Setting an unrealistically high asking price, causing the property to languish on the market.

A SCOOP OF CONTROVERSY

Everyone will talk about it

Jeff Bezos has expanded his real estate portfolio with a $79 million property on Florida's exclusive Indian Creek Island, adjacent to his $68 million home.

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  • Bezos's new acquisition is a 19,000-square-foot mansion with seven bedrooms, sitting on 1.8 acres.

  • The property features luxurious amenities including a pool and wine cellar.

  • This purchase follows Bezos's acquisition of a nearby $68 million property in June.

  • Indian Creek Island, often called "Billionaire Bunker," is known for its wealthy residents and exclusivity.

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