A mortgage lender in Santa Clarita is talking about the strength of the real estate market despite the negative economic impacts of the pandemic, and how this is affecting home buyers.
American Family Funding’s Dave Cantrell first shared that he believes home ownership will “drive this economy back to where we used to be” following the coronavirus pandemic.
“The real estate market (is) much, much different than what we had back in 2008, where the real estate market was really one of the causes of the recession,” said Cantrell. “This time I really believe that the real estate market is going to be what brings us out of a recession because the market is still so strong.”
One of the reasons the market has strengthened is because of reduced mortgage interest rates, according to Cantrell.
“Any time you have a lower interest rate, it increases your ability to buy a home in that your affordability index goes up,” he said. “You can afford more with lower interest rates obviously because it brings your payment down.”
The second reason Cantrell noted the housing market is strong is because of low availability of homes for sale.
“If you look at any of these homes that are being listed right now, they are getting multiple offers very, very quickly because there’s just not a lot of homes around,” he said. “We don’t have nearly enough as a country. We are about 1 million homes underbuilt.”
These two components of the market may mean buyers will face “a little bit more of a challenge,” Cantrell noted, but those looking to buy a home can find ways to make their offer more competitive.
“There’s different ways to make your offer more attractive,” he said. “Not just, ‘Hey, we’re going to pay a little bit more.’ There might be other things out there.”
Santa Clarita mortgages lender American Family Funding can help you fulfill your dream of home ownership. A highly rated Santa Clarita mortgages lender, American Family Funding maintains a focus on community involvement and a commitment to giving back whenever possible. A friendly mortgage advisor will make the first time homebuyer experience an easy and stress-free experience — even with bad credit or a low down payment. The Santa Clarita home loan officers at American Family Funding also specialize in VA loans, reverse mortgages, refinancing and the STAR Loan Program.