"Obermiller pointed to builders such as D.R. Horton, which advertise relatively lower per-square-foot prices than competitors. But he said monthly costs remain daunting. (D.R. Horton) was the last I knew that were building at about $190 a square foot, which is well below $285 and over $300 for the rest of the builders, he said. But even then, I figured out pretty quick what the payments are for something like a $350,000 loan with everything tied in."
"I think it was running about $3,000 a month, just for a starter home. Cash buyers from higher-cost states make competition harder for locals, he added."
"But specialized programs offer buyers the chance to rent before buying, allowing time to save. In essence, what they're doing is they're allowing someone to pick out a home that they're interested in, Obermiller said. This company will then purchase the home for them, and it will then rent back for around a year, and then they will allow the person to close if they choose to. If they don't choose to, then they walk away."
The regional housing market has cooled, with houses staying on the market longer while certain neighborhoods attract buyers through targeted marketing to New York and New Jersey. Some builders advertise lower per-square-foot construction costs, yet monthly mortgage payments for starter homes can still reach about $3,000 on a typical $350,000 loan. Cash buyers from higher-cost states heighten competition for local purchasers. Purchase-and-rent-back or rent-to-own programs allow prospective buyers to lock in a home, rent it for about a year while saving, then choose whether to close. Ongoing job portability and remote work bring higher-income, mobile buyers.
Read at www.housingwire.com
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