Persistent tight lending standards may have cost the housing market nearly 19 thousand new home sales in the last six months, according to a survey conducted by the National Association of Home Builders. A large majority of homebuilders surveyed, 83 percent, stated they’ve lost sales recently because potential buyers did not qualify for mortgage loans. The average builder lost nearly 10 percent of sales for this reason, according to the NAHB survey.
Speaking about their own local areas, a combined 55 percent of survey respondents said they consider lending standards somewhat or very tight, while just 11 percent consider their lending environment somewhat easy. No respondents categorized lending standards in their area as very easy.
Home values are expected to continue appreciation in the vast majority of the country, especially in markets west of the Mississippi River, according to a market forecast from Veros Real Estate Solutions. According to the firm, homes in 83 percent of American markets are expected to increase in value over the next year, up from a prediction of 80 percent last quarter. While the expected growth is widespread, all 25 of the top markets in Veros’ report sit west of the Mississippi, while 24 of the 25 markets forecast to see a drop in home values are to the east. For those areas, the company says declining population trends are expected to keep values down.