Gulf Shores housing is finally recovering as conditions have boosted affordability to an all-time high. At the same time, a new study shows that lenders’ unwillingness to loosen their qualifications may be slowing down the recovery.
The latest data from the annual Harvard Joint Center for Housing Studies report shows that, in general, the Gulf Shores housing market is in better shape than it has been in years, as employment continues to grow and home prices have rebounded — or at least stopped falling — over the past few months. Sales of existing homes have been on the rise for the last 10 months, and bottomed-out prices suggest a full recovery may come over the next few years or so.
Gulf Shores Housing Loans
People are becoming more and more confident in their abilities to afford a home, but many mortgage lenders are keeping tight wraps on home financing.
Home prices are down some 35 percent nationwide, interest rates are below 4 percent and have been for some time, and at the same time, renting is becoming more expensive. But with loans harder to get, the reality of owning a home is becoming even more cloudy for some would-be home buyers.
Experts generally agree that this continued tight policy on lending is an overreaction to the downturn seen in the last few years, which led to millions of people becoming delinquent and later defaulting on their home loans, and it cost banks billions.
Many lenders are still requiring credit scores well above what would have been needed to qualify for a mortgage just a few years ago, and most also require larger down payments from those who would otherwise qualify, making it still difficult to afford Gulf Shores housing.
If you’ve been watching mortgage rates plummet, and rents going up, and think now may be the time to look into the Gulf Shores housing market, give us a call. We’ll be happy to sit down with you and discuss your options.