Conor Sen at Bloomberg writes that homestead exemptions could be the key to help non-cash buyers at the entry level move from the back of the line to the front…(Bloomberg)
The government is trying to help first-time homebuyers by creating access to mortgages, but the problem is that entry-level housing is the market segment with the least inventory, and where investors and cash buyers have been most active. Rick Palacios Jr. at John Burns Real Estate Consulting explained why on Twitter…
- “Very difficult market for 1st time buyers in $200k to $275k range. Sometimes 50 offers+ & investors are winning! Forget using any assistance programs for 1st time buyers; sellers won’t even consider the offer.”
So what can be done? Sen argues that homestead exemptions could help…
- “Local governments could increase the amount that’s covered by the homestead exemption…That would make owning these houses as investment properties less attractive, while giving would-be buyers less competition for the limited number of affordable units that come for sale.”