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41 » VISIT US ONLINE @ DSNEWS.COM UNWILLINGNESS TO SELL KEEPS INVENTORY TIGHT Waning housing inventory has many industry professionals worried, especially as demand picks up. Inventory fell 7 percent in March, according to the National Association of Realtors, a trend that continued into April. "e inventory is reaching historic lows," said Redfin CEO Glenn Kelman on CNBC. "It's never declined faster than it did last month. It's freaking us out—it's affecting our business; it's limiting our sales. We're going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch." Data from Redfin shows that homes in April sold the fastest since 2010 and sold 10 days faster than a year previously. Many homes—one in four—sold above their list price. Kelman put the blame partially on an unwillingness to sell, as many homeowners choose to rent out their home to keep their mortgage instead. "It's a new landlord nation where everybody is renting out their basement," Kelman said. "When somebody moves up, they don't sell their old place, they rent it out to somebody else, and it's because they want to keep that 30-year mortgage for 30 years, and it's because they can easily find somebody on Airbnb who will take the place." Additionally, home prices have continued to rise, though Kelman stated that "it's not a bubble." According to his interview on CNBC, Kelman blames the inventory problem on a lack of construction, as homebuilders are building 18 percent fewer homes than the 25-year average. "Cranes fill the sky in every town, but they're building office buildings," he said. Kelman noted that employment may be rising, but the lack of homes does not fall in line with this trend. According to Kelman, homebuilders are opting to build apartment complexes instead of single-family homes, citing tight credit keeping buyers off the market. "ere is so much demand in terms of rent that it doesn't make sense to build properties for sale," Kelman said. DOWN PAYMENT PROGRAMS ON THE DECLINE e number of down payment assistance programs is decreasing, according to Down Payment Resource. e site released its Q1 2017 Homeownership Program Index (HPI) in May, showing that the number of down payment assistance programs fell by nine to 2,454 from the previous quarter. Around 87 percent of these programs have funds currently available for eligible homebuyers, holding steady from the previous quarter. According to the Zillow Housing Aspiration Report, saving for a down payment is the biggest barrier to homeownership, with 70 percent of renters citing not being able to afford a down payment as their top hurdle. Down Payment Resource's HPI is particularly focused on programs aimed at military and veteran homebuyers. According to the HPI, there are 135 programs across the country with special benefits for veterans or members of the military, and military and veterans often have the option to pair these programs with their Veterans Association housing benefit. "ere are many mortgage-ready renters today, but they don't know it," said Rob Chrane, CEO of Down Payment Resource. "Often, homebuyers remain sidelined for years due to the down payment. Plus, veterans and members of the military may not know about additional homeownership benefits they can pair with their VA loan. After serving our country, it's important we, in turn, support our veterans in achieving their dream of homeownership." One popular veteran assistant program is the PenFed Foundation Dream Makers program. "Since the Dream Makers inception, the PenFed Foundation has provided over $5 million in down payment assistance grants, supporting the purchase of a home by veterans and military personnel," said Mark Smith, Director of Programs at the PenFed Foundation. Other programs across the U.S. include the Atlanta Neighborhood Development Partnership Veterans Program, the Florida First & Military Heroes Program, the Home in 5 Advantage Program in Phoenix, and the Home for Texas Heroes program. of people believe the second quarter of 2017 is a good time to buy a home. Source: National Association of Realtors June 2017 HOME survey. STAT INSIGHT 70%

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