1. New mortgage disclosure rules: The implementation of the TILA/RESPA Integrated Disclosure (TRID) regulations on Oct. 3 has been delaying closings and having an impact on sales, according to members. About 47 percent of respondents reported longer closing times compared to a year ago, up from 37 percent in the October 2015 survey. It typically took another 40 days to close a sale, up from 35 days in July 2015. We have not seen this as a big issue with the transactions we had close after Oct 3rd in 2015.
2. Condo financing: REALTORS® continued to report difficulty in obtaining financing for condominium unit purchases because many condominiums are not FHA or GSE eligible. Read more. We have lenders that can make buying a condo pretty normal!
3. Tight inventories: A smaller number of homes for sale across the country are limiting choices for buyers and pushing prices up, decreasing housing affordability. REALTORS® particularly reported low inventory of properties in the lower price range and for those that are move-in ready. This has been a big issue in 2015 in Spokane but we combat it by staying on top of the market so our buyers get to the listings as soon as they hit the market! We don't expect the market to change in 2016 and our brokers will continue to be first to the market every time!
4. Tight credit: Stringent credit standards continue to affect sales, particularly for first-time home buyers who are still struggling to qualify for financing, according to the REALTORS® surveyed. “Credit profiles that fail to meet tighter underwriting standards are conditions that continue to work against first-time home buyers,” according to the report. The key for our clients is having the right lenders to refer them to so they can get them the loan they need for the home they want!
5. Appraisal issues: “Late” and “low” appraisal valuations was also cited by REALTORS® as being problematic in transactions. We have not had appraisal issues that cost our buyers money because we know the value of the properties we help our clients make offers on!
Source date " National Association of Realtors"