In today’s home purchase market, success is all about adapting to market conditions and understanding homebuyer needs and perceptions. That’s why it’s more important than ever for real estate professionals to work with lenders who understand today’s homebuyer and the current mortgage financing environment, and who can support you and your clients.
D. Steve Boland,Home Loans Originations Executive for Bank of America, recently wrote the following commentary for RISMedia about this and other essentials for succeeding in today’s market.
Understanding Homebuyer Dynamics
While information about regulatory matters and other market trends is critical to success in today’s purchase market, having an in-depth understanding of today’s homebuyers is equally essential.
For example, first-time homebuyers have historically represented about 40 percent of all home purchase transactions. But that percentage has remained stubbornly below historic averages. In fact, numbers released by the National Association of REALTORS® (NAR) for May 2014 sales data showed that first-timers made up only 27 percent of marketshare.1
While widely available research indicates that the dream of buying a home for the first-time buyer remains alive and well, taking action on that desire is being delayed. And, of course, the lower numbers of first-time homebuyers impact the entire housing market, constraining the market for move-up buyers.
There are three demographic categories that represent much of today’s first-time home purchase market: millennials, singles and multicultural buyers. At Bank of America, we are reaching out with tools, resources and educational information that help us connect with these potential buyers. We also connect with customers who decide to move up to a larger home, want to buy a second home or need jumbo financing.
Providing Market Trend Information from Industry Experts
When real estate professionals need access to insights and guidance, they can look to the expert sources available from their lending partners who can help address the needs of a wide array of homebuyer categories. For example, Bank of America’s Mortgage Loan Officers (MLOs) bring extraordinary levels of experience and expertise to the support they provide.
With its powerful balance sheet, Bank of America is able to offer a broad menu of loans that meet the regulatory guidelines’ definition of qualified mortgages, as well as non-conforming options. We have been preparing for the return of a purchase-dominated market for several years. Most important, we are committed to providing real estate professionals with essential information and resources.
1 NAR news release; June 23, 2014; www.realtor.org/news-releases/2014/06/existing-home-sales-heat-up-in-may-inventory-levels-continue-to-improve
