Skip to main content

Study: Low Inventory and High Prices Are Housing's New Normal

Phil Hall
Jul 20, 2018
For Sale

Anyone hoping for a housing market with greater inventory and lower prices will be disappointed for at least the next two years, according to Summer 2018 edition of The Housing and Mortgage Market Review released today Arch Mortgage Insurance Co.
The new report determined that the number of existing homes for sale is at the lowest level since analysts started tracking the data in the early 1980s. Super-limited inventory coupled with below-normal construction has created a supply deficit that cannot meet the demand surplus, especially in an economy where employment and consumer confidence are rising. As a result, the new report predicts that home prices have a 95 percent chance of rising over the next two years, especially in the entry-level housing segment, which could prevent potential first-time buyers from entering the market.
“Fewer people are selling starter homes to trade up to bigger houses, and that’s a trend that will continue now that the majority of homeowners have lower mortgage rates than they could get on a new loan,” said Ralph G. DeFranco, global chief economist for Arch Capital Services Inc. “Millions of entry-level homes were converted from owner-occupied to investor-owned rentals during the foreclosure crisis and higher development costs, ranging from utility hook-up fees to building permits, are leading builders to focus on constructing larger, more expensive houses. With fewer new starter homes, the most likely scenario is continued, rapid price growth of existing homes, particularly at the lower end of the market.”
Jul 20, 2018
Feds Reviewing Appraisal Standards, Qualifications

Appraisal Subcommittee said requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.

Regulation and Compliance
Oct 20, 2021
​​​​​​​FHFA OK's Desktop Appraisals, Expands Refi Criteria

The Federal Housing Finance Agency (FHFA) said Monday it will take two steps to help make home ownership more affordable and sustainable for mortgage borrowers, especially for those in underserved communities. 

Regulation and Compliance
Oct 19, 2021
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Oct 08, 2021