"When it comes to housing, that means addressing homeownership affordability challenges, which are significant by historical standards. According to a recent Report by the National Association of Realtors, The share of first-time home buyers dropped to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years. What can be done about this? We should focus on homeownership options that are the most affordable starting with condominiums."
"According to 2024 Zillow data, condominiums in the 25 largest U.S. metropolitan areas are on average 54% more affordable than single-family homes. Unfortunately, affordability is not translating into demand. In July, Redfin reported that condo sales are down 12% year-over-year a drop of more than 3 times the drop for single-family homes. What are the reasons for this? One is excessive mortgage fees on Fannie Mae and Freddie Mac condo loans."
Homeownership affordability is a growing problem, with first-time buyers at a record low 21% share and median first-time buyer age at 40. Condominiums are substantially more affordable than single-family homes, with Zillow showing a 54% advantage in major metros. Despite cost advantages, condo sales have fallen sharply, down 12% year-over-year per Redfin. Contributing factors include a 75-basis-point LLPA charged by Fannie Mae and Freddie Mac on condo loans and widespread ineligibility of many condo projects for FHA, Fannie, and Freddie financing, leaving buyers unaware and blocked from entry-level mortgage programs.
Read at www.housingwire.com
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