adminAs the pandemic continues to affect daily life, one area poised for continued growth is residential real estates. With homeowners turning their houses into schools and offices, more and more are realizing they need more personal space to make life more comfortable and productive during the new normal.
Going into the cooler months, home sales tend to plummet like temperatures, but not so in 2020. According to the National Association of REALTORS®, “Winter may be typically a slow season in real estate, economists predict it isn’t likely to happen this year.”
Lawrence Yun, chief economist of the NAR, says, “It will be one of the best winter sales years ever.”
The NAR also says, “Low inventories combined with high demand due to record-low mortgage rates is sending buyers to the market in a flurry. Many home buyers are looking to upsize their homes as they work from home and their children attend school at home. Also, as remote work remains an option for many and some employers make it a permanent situation for office workers, some house hunters are looking farther away from city limits in search of bigger homes and greater affordability.”
Credit unions have an opportunity to take part in new home loans, as well as in home improvement offerings for those who want to stay in their existing homes but make them work more efficiently.
LEVERAGE partner LendKey’s unique solution allows lenders access to participation loans on a recurring basis, which minimizes on-going diligence and maximizes access to new loan volume. Lenders benefit from fractional ownership in loans, which broadens their portfolio and enhances risk mitigation.
Focused on the $300 billion home improvement market, credit unions can gain access to loans made to prime homeowner borrowers and benefit from multiple tactics to further mitigate risk.
Learn more here.
Please contact your LEVERAGE BDC for additional details:
Karen Frazee karen.frazee@myleverage.com 850.545.4825
Steve Pullara steven.pullara@myleverage.com 813.404.6877
Donnette Logan Donnette.Logan@myleverage.com 205.294.4227
Taylor Sheffield taylor.sheffield@myleverage.com 205.457.4261
