Tight Credit Woes | Take Me Home | Bend | The Source Weekly - Bend, Oregon

Coverage for Central Oregon, by Central Oregonians.
100% Local. No Paywalls.

Every day, the Source publishes a mix of locally reported stories on our website, keeping you up to date on developments in news, food, music and the arts. We’re committed to covering this city where we live, this city that we love, and we hear regularly from readers who appreciate our ability to put breaking news in context.

The Source has been a free publication for its 22 years. It has been free as a print version and continued that way when we began to publish online, on social media and through our newsletters.

But, as most of our readers know, times are different for local journalism. Tech giants are hoovering up small businesses and small-business advertising—which has been the staple for locally owned media. Without these resources, journalism struggles to bring coverage of community news, arts and entertainment that social media cannot deliver.

Please consider becoming a supporter of locally owned journalism through our Source Insider program. Learn more about our program’s benefits by clicking through today.

Support Us Here

Culture » Take Me Home

Tight Credit Woes

by

comment
As a result of the housing crisis, tighter credit standards have made it difficult for buyers with less than stellar credit to get a mortgage even though many, if not most renters are paying more than they would for a mortgage.

This increases the demand for rental housing which contributes to our skyrocketing rents. The Urban Institute recently studied and quantified how many mortgages there would have been if borrowers at all credit levels faced the same mortgage market in 2015 as that which existed in 2001.

The difference was calculated at 1,074,099 less mortgages in 2015. The report further cited that for the 6 year period of 2009 to 2014, 5.2 million mortgages were not made due to tighter underwriting standards. According to the report, home sales in 2015 were 4% lower than in 2001. The report also states that cash sales have increased due to the tight standards. Cash sales rose from 18% of all sales to 33% in 2015. Investors are typically cash buyers and this is also part of our housing inventories as their purchases are mostly rentals.



The fact that in 2015 about 1.1 million families were not able to purchase a home has further economic ramifications. Home ownership has long been a wealth building opportunity for families. Lower home sales and inventory mean fewer construction jobs and sales of construction related materials and consumer goods related to home purchases. This affects our local economy as well as the overall U.S. economy.

About The Author

Nick Nayne, Principal Broker

Principal Broker at The Broker Network Realty in Bend, OR. Over 12 years experience in Real Estate working with buyers, sellers and investment properties.

Add a comment

More by Nick Nayne, Principal Broker