Yesterday we published an article on the latest Black Knight report showing we have 40% fewer homes on the market right now than this time last year. That's a significant shortage of housing inventory, but what can we do about it?
Lead Analyst Logan Mohtashami has explained why we can't outbuild the problem, even if building materials, including lumber, weren't astronomically high right now. From his perspective, it is going to take rates rising to cool off demand, something no lender really wants to hear.
In an article we published today, Haus Economist Ralph McLaughlin argues that a first-time homebuyer tax credit would just make the problem worse, and instead suggests incentivizing home sellers with a tax credit, or otherwise working on a deal with builders and those holding SFR units to sell to first-time buyers.
"The federal government could quickly incentivize owners of existing homes to sell using one or a combination of carrot-based or stick-based approaches. Using a carrot-based approach, opening a temporary window of capital gains exemptions would incentivize owners of investment homes with capital gains, as well as owner-occupiers with over $250k-$500k in gains, to sell."
Read more particulars about a carrot-versus-stick approach here, and tell us what you think. Do these out-of-the-box ideas have legs in the current climate? What are some other solutions? Let me know at swheeler@Housingwire.com.
Today's HousingWire Daily features an interview with the Mortgage Bankers Association's Chief Economist and Senior Vice President of Research and Industry Technology, Mike Fratantoni. In this episode, Fratantoni discusses the nation's unemployment rate and how job growth is impacting the housing market.
Rolled out in isolation, first-time homebuyer tax incentives are only likely to make supply scarcer and prices higher. Instead of just bolstering demand, policies that focus on increasing supply is what the U.S housing market desperately needs.
The updated URLA brings new complexities for quality control professionals, and now is the time to learn and ensure you stay compliant. Find out from industry experts how these changes impact your QC team and how you can ensure audit readiness. Learn more!
HW+ Managing Editor Brena Nath recently spoke with Agility 360 COO Raj Sharma about the current talent recruitment and retention challenges in the mortgage industry. Presented by Agility 360
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