Below you’ll find a few snippets of just-released, juicy information that sound fairly bearish, but there is opportunity everywhere. Sellers and buyers can adapt to the current climate and still get the benefits of buying and selling property. Seller financing (carrying paper, seller carry back) figures beautifully into the equation.
- Housing starts have fallen to their lowest level in 17 years, a 3.3% decline from April and a 32% crash from this time last year
- Starts on single-family homes fell 1%, to a 17-year low
- Building permit applications declined, down 1.3%
- Builder confidence has fallen to a record low. The National Association of Home Builders/Wells Fargo housing market index has sunk to a score of 18
- U.S. mortgage rates are currently at an eight-month high
- According to Freddie Mac, the average 30-year fixed-rate mortgage is 6.3%
- “Mortgage rates jumped this week after a number of Federal Reserve officials… expressed concern over a threat of inflation,” said Frank Nothaft, Freddie Mac VP and chief economist. “This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought.”
If you’ve been following me at all, you know that my passion is putting win-win deals together without bank financing. This will provide liquidity, support prices and help both buyers and sellers get the benefits that they’re looking for, regardless of market conditions.
What if a seller can get top dollar by offering terms and close in 21 days or less instead of languishing on the market and expiring unsold?
What if a buyer can acquire a home or investment for his family without the hassle and expense of dealing with an ailing mortgage industry?
What if taking a fresh and innovative approach can take a deal that is falling out of escrow and throw it back in?
What if someone who just needs out of their mortgage can walk away without foreclosure or short sale?
The “bad” news I reported above can make you depressed and worried, or you can trust that the answers are out there and get excited about the possibilities. I hope for the latter.
- I want to carry paper, please help me create a valuable note
- If I Carry Paper, How Much Will I Get Each Month?
- How Much Will You Pay for My Note?
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- Seller Financing Explodes As More Owners Become Willing to Carry Paper
- What You Don’t Know About Notes Can Cost You Listings, Sales and Closed Escrows!