Mortgage loans for new construction properties can be difficult to arrange. The challenge becomes even greater when you consider that first-time buyers and real estate investors are the ones who tend to scoop up these properties. But mortgage brokers need to be prepared for whatever deal comes their way – and right now, new construction is hot.
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The market for new builds is impacted by a number of factors. For starters, a higher inventory of new-build projects in the past generally yields fewer starts as buyers take possession of the since-completed properties and builders re-evaluate the market. Jobs data – particularly unemployment figures – also plays a part, as people with a regular income are more likely to purchase homes.
Finally, property price determines whether a buyer will choose a resale property or a brand new one.