2011 has been off to an optimistic start for many real estate markets and as the idea of ‘affordable housing’ begins to occupy the minds of potential homebuyers once again, foreclosure programs go under scrutiny.
Foreclosure programs such as HAFA (Home Affordable Foreclosure Alternative), HAMP (Home Owner Modification Program) and the Federal Housing Administration short refinance programs are being reported as inadequate in assisting with improving the real estate market and the House of Representatives are pushing for termination of these programs by 2012.
So what does this mean for the real estate market? An increase in demand for rental properties. Many current homeowners who are planning on relocating are aware of the economy and know that selling now could mean taking a big hit financially. Young 20-somethings who have the money to buy are taking a more frugal approach and choosing to rent instead of own. Families who are fearful of defaulting on a mortgage are going by way of renting larger homes for extended periods of time instead of buying.
So what does this mean for current homeowners, realtors and landlords? An increase in rent. With many families and individuals who are fearful of entering into home ownership due to financial troubles, the increase in demand for rental properties provides many homeowners and landlords a leverage to increase their rental rate. For example, within the next four to six months, New York is anticipating a 10 percent increase in rental rates within and outside the city.
However, although these assistance programs are under scrutiny and the demand for rentals are on the rise, McGeough Lamacchia advises those with poor credit or those with fears should shy away from the idea of owning over renting. Entering into home ownership not only allows for the opportunity to create a life in line with the ‘American Dream,’ it can also serve as a source of income later down the line. By taking advantage of these active programs now and investigating short sales and foreclosures as affordable and ‘poor credit friendly’ housing options, first time home buyers will not only benefit now but also in later years should they choose to lease out their home.
(For example, when reading the graph from 2010, if you remove buyer sides (Sold not listed) and only look at the first two columns that both start with (Listed) it adds up to 146 then add up the next office below their total is 63, not even half of what McGeough Lamacchia)
Within the state of Massachusetts, it’s indisputable that McGeough Lamacchia is the number one short sale listing office. Experience, knowledge and continuous client satisfaction are the top three ideals we focus on as a short sale listing office and our numbers show for it.