With surging home prices, more home buyers are showing an interest in manufactured housing. Even buyers who aren’t specifically looking for manufactured homes may discover that some listings they are interested in feature them, since they more closely resemble site-built homes nowadays.

The manufactured housing segment has long contended with a reputation of being poorly made or cheap. Companies say the latest designs are modern and often energy-efficient and are built to withstand even the most severe weather.

Manufactured homes are built in a factory and then assembled onsite. This allows homes to be built faster and cheaper.

Some builders and developers hope that home buyers who may be locked out of homeownership may consider manufactured housing as an option. Also, lenders and developers are showing more interest in manufactured housing, believing it could help with housing inventory and affordability challenges.

“We have a lot of teachers, first-time home buyers, and folks downsizing after retirement,” Dustin Arp, managing partner of Spark Homes LLC, which has developed manufactured home communities, told The Wall Street Journal. “Maybe they used to qualify for site-built housing but no longer do.”

A new single-family built on site sold for about $392,000, on average, in 2020; subtracting the cost of the land, the house itself cost about $309,000, The Wall Street Journal reports, citing government data. For comparison, new manufactured homes cost $87,000, excluding the land.

More than 100,000 new manufactured homes are to be built this year, the highest amount since 2006, according to U.S. Census Bureau data.

But the sector may still need to convince buyers about manufactured housing as a cost-effective alternative. The homes are often sold by dealerships. They may offer limited financing options. “In those cases, a person might buy a manufactured house as a piece of personal property, like a car, rather than getting a mortgage that tethers the house to underlying land,” according to The Wall Street Journal.

Further, about 42% of manufactured homes are purchased with loans secured by the home. Those purchases do not include the plot of land, according to the Consumer Financial Protection Bureau. The loans could come with higher interest rates, and owners may be at greater risk of losing their homes if they don’t own the land as well, The Journal says.

Recently, Fannie Mae and Freddie Mac have adopted new programs to make it easier for lenders to extend conventional mortgages on certain manufactured homes, including those that have features like porches or garages built on site.

House hunters will likely wonder about the age and upkeep of certain big-ticket features in a home like the roof and HVAC system. But they will also likely be interested in just how move-in ready the home is. Sellers can take on some prep work to get their house move-in ready to appeal to the largest buyer pool.

HomeLight, a real estate referral company, recently interviewed real estate agents to list some of the top remodeling projects before selling a home. Some of the projects that topped their list:

1. Painting

• Average project cost: $954 to $2,893 (depending on location, paint type, and labor)

Stick with neutral colors throughout, like whites, beiges, or soft grays. “It’s fine when there’s an accent wall or whatever; that’s different,” MaryBeth Harrison, a real estate professional in Dallas, told HomeLight. “But when every room’s a different color …  that’s cheap to fix with paint.” More than half of real estate professionals surveyed by HomeLight said they advise sellers to paint their interiors before listing. Some of the most popular colors: Sherwin-Williams Agreeable Gray and Benjamin Moore’s Revere Pewter.

National Association of REALTORS®’ Remodeling Impact Report

NAR’s Remodeling Impact DIY Survey

Styled, Staged & Sold blog

2. Keep flooring consistent

• To install carpet: $789 to $2,794
• To install hardwood floors: $2,493 to $6,754
• To install vinyl floors: $800 to $2,900

Real estate pros may be more likely to recommend this house project if the home has several different kinds of flooring throughout. A more uniform flooring look—one or two types—can be more appealing to buyers. Real estate pros say that many buyers may expect hardwood floors or premium vinyl. But not all carpeting has to go. However, many real estate pros do suggest removing any dated carpet, like those in bright colors, as well as any stained or worn carpet.

3. Brighten the kitchen

• Average project cost: $382 to $1,064 (depending on equipment and labor); $2 to $20 per piece of hardware

White-colored kitchens remain the most popular. They can brighten the look of the space. “What the buyers are looking for today is white and clean—they just want clean,” Harrison told HomeLight. “It doesn’t have to be stark white. But they just want a clean palette.”

Dated kitchen cabinets can be painted by a pro for a quick fix. If the kitchen has other colors throughout, real estate pros recommend painting the walls white to try to brighten the space. Also, kitchen cabinets can get an upgrade with new hardware, such as hand pulls.

4. Replace dated countertops and appliances

• Average project cost: $40 to $100 per square foot for new countertops (depending on material); $1,360 to $19,050 for appliances

Dated appliances and countertops can turn off buyers. If replacing the countertop, Harrison suggests a bright, monochromatic look, such as a gray or white countertop made of granite, marble, or quartz. Butcher block countertops could be a more cost-effective option. Harrison advises against brown or multicolored granite, which she says can date a home. She also recommends not replacing a countertop if the rest of the kitchen has not been upgraded and is dated. New countertops will look out of place.

5. Hire a professional cleaner for your bathroom

• Average project cost: $70 to $85 per hour for a professional

A thorough cleaning of the bathroom can make a big difference, and often a professional cleaner can do the most thorough job. Pay attention to tile grout lines and any signs of mildew.

Since the beginning of the pandemic, the average FICO credit score has increased by eight points to reach 716, according to Fair Isaac Corp. Pandemic-related relief programs and a decrease in consumer spending early in the pandemic may have helped Americans improve their credit histories by paying existing debts and curtailing new debt.

The increase has largely been driven by consumers who started with a credit score below 600. FICO usually considers a score between 670 to 739 to be good; anything below 580 is considered poor.

Consumers in that category averaged a 581 credit score in April 2020. One year later, those scores had climbed to an average of 601.

But economists warn that improvements could be wiped away with an increase in inflation, which is now at a 31-year high. Americans are paying more for groceries, gasoline, and products. That could lead more consumers to take on more debt, too.

Still, “inflation by itself … is not going to have a significant impact on the overall national credit score,” William Lansing, CEO of FICO, told MarketWatch. “But if prices outstrip income and people wind up taking on more debt—that obviously would have an impact on their FICO credit score. There’s also a seasonal component—typically in the fourth quarter around holiday time consumers take on more debt. So we could see a modest downtick from that.”

Earlier this fall, the Consumer Financial Protection Bureau reported that despite poor labor market conditions during the pandemic, renters’ financial conditions were improving. Renters’ credit scores increased by 16 points during the pandemic. However, those scores remain substantially below those of homeowners.

Renters could soon get a boost: Freddie Mac recently announced a new program to help renters build up their credit profiles by providing a means for owners or managers of multifamily properties to report on-time rental payments to the three major credit bureaus. Less than 10% of renters currently see their on-time rental payment history reflected in their credit scores. That could be preventing some from accessing credit or qualifying for some of the best rates. Read more: Freddie Initiative Adds Rent Payments to Credit Reports

As home buyers continue their searches in an active and competitive fall season, the nation’s top-performing markets in October are all affordable alternatives to their nearby big-city counterparts.

Topping realtor.com®’s October list was Manchester, N.H., about an hour northwest of Boston. Homes in Manchester are selling in under 24 days—about 21 days faster than the overall housing market. Properties there are receiving about 2.8 times as many views on realtor.com®.

“Affordability and strong local economies remain very much top-of-mind for today’s buyers,” says George Ratiu, manager of economic research at realtor.com®. “With home prices reaching record levels this year, many buyers are still finding themselves locked out of expensive cities. Many of the markets on our list are small to mid-sized within a reasonable commute distance of a major employment center but with much more affordable home prices.”

Realtor.com® identifies the top-performing housing markets each month by pinpointing which areas have seen the quickest sales and fetched the most views at its site. The average median list price in the 20 markets topping its list in October is nearly 16% lower than the median price nationally. Homes on the list were a median of $320,000 compared to the nationwide median home price of $380,000, realtor.com® says.

Here are the 15 markets that topped realtor.com®’s October list:

1. Manchester, N.H.: $419,000 (median listing price)
2. Burlington, N.C.: $295,000
3. Eureka, Calif.: $489,000
4. Rochester, N.Y.: $211,000
5. Elkhart, Ind.: $219,900
6. Lafayette, Ind.: $227,500
7. Fort Wayne, Ind.: $224,900
8. Johnson City, Tenn.: $300,000
9. Jefferson City, Mo.: $179,900
10. Rapid City, S.D.: $386,000
11. Raleigh, N.C.: $425,000
12. Topeka, Kan.: $175,000
13. Concord, N.H.: $389,900
14. Springfield, Mass.: $310,000
15. Worcester, Mass.: $399,000

The U.S. House of Representatives passed President Joe Biden’s signature Build Back Better plan early Friday by a vote of 220-213. The bill now goes to the Senate for consideration.

The roughly $1.75 trillion bill spares real estate investment from the most-feared taxes and includes key NAR priorities like investments in affordable housing and down payment assistance.

The National Association of REALTORS® says key aspects of the bill will support and protect real estate markets.

“Our advocacy operation is bipartisan and focused on the issues. Our goal was to ensure this legislation includes robust funding for affordable and fair housing and protects real estate investment from misguided and harmful new taxes,” says Shannon McGahn, chief advocacy officer for NAR.

”We are pleased that House lawmakers expanded affordable housing provisions from what was in the original framework, but this bill is far from final. Expectations are the Senate could remove some provisions to lower the price tag. We will continue to work with Congress to ensure the final bill is good for the real estate economy and consumers.”

NAR played a key role in getting Congress’s attention on housing priorities. At an Oct. 20 press conference at the U.S. Capitol, NAR CEO Bob Goldberg joined other housing leaders and key members of Congress to call for the inclusion of affordable housing provisions in the final bill.

”As a nation, we have to find ways to close the supply shortfall,” Goldberg said at the press conference. “Doing so will be particularly meaningful for lower-income households, millennials, and households of color.”

Read details of the House bill at nar.realtor.

©National Association of REALTORS®
Reprinted with permission

Military families with Veterans Affairs loans are losing out in the competitive housing market. Sellers are showing preference to buyers with more conventional financing or all-cash offers that they believe will offer a faster and smoother closing.

Ninety-four percent of real estate professionals surveyed said sellers are most likely to accept an offer with conventional financing over a government-backed loan, according to an April 2021 survey conducted by the National Association of REALTORS®.

But sellers may have some outdated concerns over VA loans, Caitlin Turkovich, branch manager specializing in VA loans at Union Home Mortgage in Las Vegas, told CNBC. VA loans are partly guaranteed by the U.S. Department of Veterans Affairs and offer zero percent down financing.

“VA loans are actually the easiest to qualify for if you have entitlements,” Turkovich told CNBC. Entitlements refer to the amount the VA will repay if the borrower defaults.

Turkovich says buyers using VA loans should work with a lender who specializes in VA loans to help clear up possible misunderstandings and outline specifics in buyer preapproval letters.

Also, Turkovich says VA loan buyers can take other steps to try to stand out, like by making a 5% down payment. That matches the minimum for some conventional mortgages, and it also drops the VA loan funding fee from 2.3% to 1.65%, she notes.

VA loan buyers also may make their offer stronger by offering earnest money—such as 5% versus the standard 1%, Cedric Stewart, a real estate professional with Keller Williams in Rockville, Md., told CNBC. “The largest earnest money deposit is another instrument to communicate an ease in the relationship,” Stewart said.

Home buyers and homeowners got another chance this week to lock in historically low rates. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports.

“Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” says Sam Khater, Freddie Mac’s chief economist. “These low mortgage rates, combined with the tailwind of first-time home buyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for home buyers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 10:

• 30-year fixed-rate mortgages: averaged 2.98%, with an average 0.7 point, dropping from last week’s 3.09% average. Last year at this time, 30-year rates averaged 2.84%.
• 15-year fixed-rate mortgages: averaged 2.27%, with an average 0.6 point, dropping from last week’s 2.35% average. A year ago, 15-year rates averaged 2.34%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.53%, with an average 0.4 point, dropping from last week’s 2.54% average. A year ago, 5-year ARMs averaged 3.11%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

Home buyers don’t have much time to decide whether they want a house or not. As soon as a listing hits the market, the rush is on. Home sales between July 2020 and June 2021 were on the market for a median of just one week before going under contract, according to the National Association of REALTORS®’ newly released 2021 Profile of Home Buyers and Sellers. That marks a record low in NAR data dating back to 1989.

“There’s no plotting of where the Christmas tree will be and measuring for a couch in that scenario,” Jessica Lautz, NAR’s vice president of demographics and behavioral insights, told The Wall Street Journal. “You really are making that decision very fast.”

Home shoppers Anshul and Angharad Bhardwaj told The Wall Street Journal they made more than 20 unsuccessful offers on homes since they started their house hunt in Salt Lake City in September 2020. They finally were successful in February after making an offer on a home within an hour of touring it, even though they were still told it was already under contract. They submitted a backup offer and purchased the house for $780,000 after the initial offer fell through.

Virtual showing tools are helping buyers visit houses quicker. Forty-three percent of buyers found virtual tour options to be particularly useful over the past year, according to NAR’s report.

To make their offers more competitive, some buyers continue to forgo appraisals and home inspections. Twenty-one percent of buyers waived their inspection contingency in September and 23% waived their appraisal contingency, according to the REALTORS® Confidence Index Survey for September.

With competition so stiff, buyers are paying full asking price or more as well. The median sales price was the full asking price in June, the highest on record in NAR’s data. The median sales price was $305,000, an increase from $272,500 compared to a year ago, according to NAR.

In the third quarter, 66% of active home buyers said they spent three months or more searching for a home without success, according to a survey from the National Association of Home Builders. Forty-five percent of prospective buyers say they keep getting outbid by other offers from buyers. (Read more: Bidding Wars Still Burden Unsuccessful Buyers)

Some recent housing reports have seen signs of a cooling period in many markets, following the typical seasonal pattern. But real estate pros say demand remains high for the limited number of homes for sale, and buyers still don’t have much time to reflect on homes or wait to submit offers. “Instead of a house lasting three days on the market, it’s lasting seven days,” Harold Torres, a real estate professional in Orlando, Fla., told The Wall Street Journal, putting the cooling period into perspective. For house hunters, “negotiation and any type of wiggle room is not really there yet.”

Homeowners are striking gold in real estate. The percentage of financed homes that were equity rich in the third quarter grew to nearly 40%, up from 28.3% a year ago, ATTOM Data Solutions reports. A home is considered equity rich when the combined estimated amount of loan balances on the property is no more than 50% of the estimated market value.

“Homeowners across most of the United States could sit back with a smile yet again in the third quarter and watch their balance sheets grow as soaring home prices pushed their equity levels ever higher,” says Todd Teta, chief product officer at ATTOM Data Solutions, a real estate data firm. “For sure, some uncertainty lies ahead as other key market barometers have been a bit shaky as of late. And the coronavirus pandemic remains a threat. But there is no doubt that homeowners continue benefiting big-time from the relentless home price increases we are seeing around the country.”

Most of the top equity-rich places are clustered in the West and South. The states with the largest upticks in equity from the second quarter to the third quarter were Utah, where the percentage of mortgaged homes considered equity-rich increased from 45.5% to 60.9%; Arizona, up from 39.7% to 53.2%; Idaho, up from 54.2% to 65.1%; North Carolina, up from 28.4% to 38.6%; and Nevada, up from 34.9% to 44.9%.

Broken down by metro area, the places with the highest share of mortgaged properties that were equity rich in the third quarter are:

• Austin, Texas: 66.9% of properties are equity-rich
• Boise, Idaho: 66.7%
• San Jose, Calif.: 65.8%
• Ogden, Utah: 62.8%
• Spokane, Wash.: 62.2%

While equity increases, the number of properties that are underwater—those with combined estimated loan balances of at least 25% more than the property’s estimated market value—continues to shrink. Just 3.4% of mortgaged homes—or about one in 29—were considered seriously underwater in the third quarter of 2021. That is down from 6% a year ago, ATTOM Data Solutions reports.