Realtors Talk About Potential Changes In Investment Property Purchase Rates | News

Two real estate brokers weigh in on the current Cannon Beach market.

“I think the new story is what Fannie/Freddie just announced about the rate change for second homes and investment homes,” said Maryann Sinkler, broker for Realty ONE Group Prestige in Cannon Beach. “Given that our market is exactly that, if these changes are implemented, it could really have an impact here!”

“Fannie Mae and Freddie Mac are required to reduce the percentage of their portfolio taken up by financing second homes and investment properties,” Sinkler told The Gazette.

“I have just received another email from a lender saying that Fannie Mae and Freddie Mac are limiting the number of second home and investment property loans they take out, effective immediately,” she said. “My assumption based on that is that we will see an increase in rates on these types of purchases. The lenders I work with say that it is possible that qualifying for these types of loans will become a little more difficult .

Cheryl Johnson, broker for Realty ONE Group Prestige, said: “When rates rise, it has an absolute impact on buyers’ ability to buy as their purchasing power declines. Despite rising rates for second home buyers, with inventory at record highs, I anticipate demand will continue to outstrip supply in Cannon Beach as well as the entire North Shore for the foreseeable future. It’s a seller’s market.

The two brokers discuss the low housing stock.

“Lack of inventory isn’t a new story, but it’s definitely our reality right now!” Sinkler said. “Personally, I sell more land because people have no more houses to buy. I have several new listings gearing up to hit the market and wonder if everyone else is doing it too – if so, maybe the market will change in the next few months depending on how many queued buyers.

Johnson said people “were flocking to the Oregon Coast” to buy property.

“People come from all over…most of (the) western United States like California, Idaho, Montana, Nevada, Arizona,” she said.

“We’re seeing a lot of people who now have the option of working remotely and maybe commuting to Portland once a week rather than having to commute to a Portland office daily, or people taking the flown as needed for work but otherwise based at home,” she added.

She said Cannon Beach is a place where few shop out of necessity. “Generally, jobs don’t drive people to buy real estate in Cannon Beach.”

She said low interest rates, builders’ inability to keep up with demand for new homes, and the effect of COVID-19 on the homebuilding industry have all contributed to the low inventory of homes for sale. .

“The other thing that’s happening is locals who want to sell but still be local are waiting,” she said. “Maybe they want to upgrade or downsize or just move from Tolovana closer to downtown Cannon Beach. If they plan to stay put and without the assurance of being able to secure a replacement property, they (may) avoid putting their home up for sale rather than sitting in a waiting pattern waiting for more inventory appears.

“We are also seeing more off-market real estate activity through local connections and word of mouth – properties that never reach MLS or properties that are already under contract by the time they officially enter MLS. This is where a well-connected local agent can be invaluable working behind the scenes to find properties that are not for public sale.

“As Maryann observed, people are more open to buying land or contracting with a builder to buy the land and the future home as a whole. There has never been a better time for new construction, although land is hard to come by in Cannon Beach. Buyers are finding more options outside of Cannon Beach, north and south of Cannon Beach. Even though the completion date for this new home is 6-9 months in the future, this is an opportunity for buyers to lock in the price now.

“I have a background in new construction. I am a resource for buyers who want to learn about new construction going on, even before the land is laid on the North Shore. By the time something is almost done, it may be too late. For buyers who need to sell to buy, new construction could be the answer. With a solid game plan and the cooperation of a builder, it can be done in a coordinated effort at the right time.

Kristan F. Talley