MARKET WATCH
Wholesaler Directory
Financial Anxiety, Uncertainty Keeping Sellers On Sidelines BY MANNY GARCIA,
SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL
Angel Oak Mortgage Solutions Specialty/ Niche: Non-QM, Non-Agency Bio: “Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.” States Licensed in: AL AK AZ AR CA CO CT DE FL GA HI IL IN IA KS KY LA ME MD MI MN MS MT NE NV NH NJ NM NC ND OH OK OR PA RI SC SD TN TX UT VA WA WV WI WY DC www.angeloakms.com
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bout a third of homeowners who are considering selling in the next three years cite life being too uncertain right now (34%) and financial uncertainty (31%) as reasons they aren’t selling. Nearly 40% of these potential sellers say they anticipate a higher sale price if they wait. Despite a market tilted decidedly in their favor—with demand sky-high and inventory at rock bottom— potential home sellers are largely staying on the sidelines, citing a variety of personal financial, lifestyle and/or health concerns as major reasons. Only 1% of homeowners recently surveyed by Zillow said their homes were currently listed for sale. Among the 99% whose homes are not on the market, more than a quarter (26%) said they were concerned they would not be able to find or afford a new home once their current home was sold, the most commonly cited reason for not selling. General life uncertainty (22%) was the secondmost common reason, followed by anticipation of a more favorable sale price if they wait (21%).
AGE MATTERS First National bank of America Specialty/ Niche: Non- QM Bio: FNBA is a portfolio lender with over 65 years of experience. We understand that in the Non-QM business, service makes all the difference. That’s why we are committed to providing you with the fastest turn times, exceptional service and loan programs that make growing your business easy! States Licensed in: All 50 States www.fnba.com/mortgage-brokers
FreedomMortgage Specialty/ niche: VA Lending BIO: As the #1 VA and FHA lender*, Freedom Mortgage Wholesale is dedicated to serving the needs of brokers, wholesale correspondents, banks and credit unions with a wide variety of products. Our local Account Executives, three Regional Operation Centers, and seasoned underwriters are committed to providing an unparalleled experience *Inside Mortgage Finance, Jan-Jun 2020 States: all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. www.freedomwholesale.com
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
Reasons for not selling vary by age group: More than a third (35%) of Gen Z and Millennial homeowners said their plans for or completion of a home renovation was a main reason to stay put, compared to just 21% and 14% of Gen X and older homeowners, respectively. Younger homeowners were also more likely to cite concern about COVID-19 (20% of Gen Z and Millennial and 18% of Gen X) as a reason for not selling than Boomer and Silent Generation homeowners (11%). Some homeowners realistically may simply enjoy their current home and have no need or desire to sell and move any time soon. But among homeowners considering selling within the next 3 years, 39% said they anticipate a better price if they wait. Among those who are not currently considering selling, but may be open to it after 3 years, 39% cite concern that they won’t be able to find or afford a new home. Concern over finding or affording a new home among those more likely to sell in the near-term was a bit more muted, but still very real: Almost a third (31%) of homeowners considering selling in the next three years say their plans are paused because they are concerned about finding or affording a new home. The findings are a clear example that selling a home can sometimes cut both ways: According to the 2020 Zillow Consumer Housing Trends Report, almost two-thirds (63%) of sellers are also buyers. But while these dual-track homeowners may be able to sell their home for top dollar, they will also turn around and enter an extremely competitive buyers’ market where homes are going under contract in 12 days.
