New: 🧠 Market Minds Issue #008

We appreciate each and every one of you for taking the time to read Market Minds. Buckle up and enjoy the free value - and you won’t want to miss the literal castle for less that won’t break the bank.

The Loans You NEED To Know About for 2024

Some of these might be a given. But especially with rates higher than we’ve been used to, understanding these are key in order to best serve your buyer clients.

Almost as key as finding a mortgage lender in your area who’s able to do these types of loans:

• 1-0, 2-1, and 3-2-1 Buydowns

• Debt Service Coverage Ration (DSCR)

• *Buy Before You Sell (BBYS)*

• Down Payment Assistance (DPA)

As we head into the new year, we encourage you to touch base with your lenders and explore new connections.

The Bottom is Likely Near

The affordability bottom, that is.

The number of affordable homes for sale in the United States has reached its lowest level on record. The analysis, which looked at new listings in 97 of the most populous metropolitan areas, defines a listing as affordable if the estimated monthly mortgage payment is no more than 30% of the local county's median household income.

The national share of affordable listings was calculated by dividing the sum of affordable listings in the analyzed metros by the sum of all listings in those metros. The data for 2023 goes through November, while data from previous years covers the entire year. Redfin has been keeping records since 2013.

Will These Make a Comeback?

A century ago, homebuyers would search through catalogs for kit-built homes from companies like Sears. Today, modular homes, the descendants of those kit homes, are gaining attention in the real estate market. With affordability becoming a challenge and more buyers considering sustainability, modular homes offer an alternative worth considering.

In Chicago's Southside, up to 2,000 single-family modular homes are being assembled, with a down payment of only $1,000. A smaller affordable modular home project is also planned for the Maryland suburbs outside Washington, D.C. Modular homes have even been used to combat homelessness in the U.S., Canada, and other countries.

Do you see these making a comeback?

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A Literal Castle

Who said owning a castle has to break the bank? This Tulsa, OK home can be yours for only $500k. View the full listing here.

AND a 2 bed 1 bath camp on the water? Sign us up. 😂

TL;DR (Too Long; Didn’t Read)

Understanding key aspects like 1-0, 2-1, and 3-2-1 buydowns, Debt Service Coverage Ratio (DSCR), Buy Before You Sell (BBYS), and Down Payment Assistance (DPA) is crucial, especially with higher interest rates. Connecting with mortgage lenders who offer these types of loans is essential. The affordability of homes in the U.S. is at a historic low, urging a close examination of the market. Meanwhile, modular homes, a modern evolution of kit-built homes from the past, are gaining traction due to affordability and sustainability concerns. Notably, projects like assembling 2,000 modular homes in Chicago and addressing homelessness showcase their potential resurgence in the real estate market. You can buy a castle for only $500k.

Have a great weekend and Happy Holidays - we’ll see you next Saturday.

Cheers 🍻

-Market Minds Team