Many housing markets across the US have seen a price appreciation in the last twelve months. Is this a continuing trend or just a glitch in the market that is going to be quickly corrected? Some market analysts think the latter may be the case.
The Zillow Real Estate Market Report used the most recent quarterly figures to illustrate the slowdown; quarter over quarter appreciation in the first quarter was 0.5 percent compared to 2.1 percent in the fourth quarter of 2012. Zillow calls the recent months of robust price gains “unsustainable” as historic annual home appreciation has run around 3 percent.1
In a recent interview Zillow Chief Economist Dr. Stan Humphries said that home value run-ups in many markets were never expected to be sustainable and the recent slowdowns are indicative that the market has begun to find its’ “natural level”.
In spite of the recent findings there are still pockets of very rapid appreciation which can be viewed as troubling by some market analysts. Couple this finding with mortgage rates starting to return to normal rates, there may be many home buyers who may soon find themselves not being able to afford a home.
Sellers on the other hand may be rejoicing the price increases, but finding buyers who qualify for conventional bank financing are still few and far between. This however has opened an opportunity for owner financing which could benefit both sellers and buyers in the coming years. In the short term buyers can move into their homes faster and sellers can benefit from not only selling but also from the on-going principal and interest payments from their buyers. After receiving a certain number of payments, the note holder can, if he or she wishes, sell those payments to an institutional buyer such as NoteCom.
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If you currently own a real estate note and are in need of immediate cash, we would like an opportunity to bid on and possibly BUY YOUR NOTE! With over 20 years experience in the private note industry, our experienced staff is available to provide you with a quick quote and help make it easy for you to get the most for your note. Visit us today at www.notebuyingusa.com or contact us at 1-877-399-1211. If you are considering offering owner financing when you sell your property, please click here to receive your free copy of “10 Critical Steps to Creating a Sellable Note”.
This information is intended to be used as a general guide. It is not intended to constitute legal advice and is not a substitute for the advice of an attorney. While every effort has been taken to present the information accurately, this document may not be infallible. No warranty is made that these materials are current, complete, accurate, or suitable for any particular purpose. You should seek advice from your attorney before proceeding with any real estate transaction.
Source(s):
1. Zillow: “Unsustainable” Home Price Appreciation Cooling Down, 04/25/2013, Mortgage Daily News, http://www.mortgagenewsdaily.com/04252013_home_prices.asp, Date Retrieved (05/30/13).
