There is no doubt that American’s love a good sale. Looking to find a good deal on things we need to use every day or items we would like to own is almost an obsession. Coupons, discounts, bargains, or whatever else you would like to call them, Americans love a good deal, and really love to save money! So what does this have to do with increasing the numbers of loans you close? Simple, houses and the money to buy them is on sale NOW!
You just have to follow recent trends and the sales data that is coming in to recognize that the “housing bottom” has come and gone, as well as mortgage interest rates have hit bottom and are starting to climb! In fact, almost everyone you ask would tell you they think housing prices and interest rates are headed higher in the next couple of years.
Declining home inventories and budget deficits are sending prices higher in both housing and mortgage interest rates. Some are predicting as much as a 5.5% rise in home prices, with some closer to 10%, and we all know that as mortgage rates rise, the only thing keeping them from really exploding to the upside is the fact that the Federal Reserve is buying FORTY BILLION DOLLARS in mortgage backed securities every month. Sooner or later, that will end.
So what does this mean to you and your clients? It means that a vast number of people in this country who would benefit from refinancing are going to miss this opportunity because they don’t know that they should be doing so. As we discussed last week, 43% of all home owners are in a position to save money by refinancing their mortgages, they just haven’t done so. We also see that while a large number of people would like to either own a home, or own a different one than they currently own, they are reluctant to do so because they are not sure now is the time to act. The only way they will know, is if you tell them. You must share the facts and allow people to benefit from the obvious.
Everyone needs to live somewhere. Everyone will have a cost for shelter. Regardless if you rent or own, you will pay something to live somewhere. Rent prices are going higher faster than home prices. About 20% of all renters could buy a home today that would cost them less money after taxes then where they currently are renting. Why do they still rent? Because nobody told them they could buy! In fact, all the media has done is tell people how bad it is to own a home. How it is almost impossible to get a mortgage. Well, we all know that those so called “experts” are dead wrong.
Housing is an essential part of life. Owning a home is part of the American Dream! Yes, the process is more challenging. Yes, you have to do your homework. Yes, it does require some effort to buy a home, but the opportunity to buy a home today while they are on sale is HUGE! Getting into your ‘forever home” right now before prices and interest rates go any higher can really add up to huge savings over the life of your stay. We are talking tens of thousands of dollars. In some cases, those that don’t buy now will never catch up to an increasing price and cost market.
Mortgage professionals and their Realtor® referral partners need to get together and engage this market. 2013 is poised to be a HUGE purchase market for real estate. A large number of people have put off buying until they were sure the market had hit bottom. Well, it did, and prices are going higher. For those who thought they would wait for interest rates to “bottom out”, well, they did and they are heading higher.
It is time to take action. We need to inform people about the market and share the opportunities. Mortgage professionals and their Realtor® referral partners need to hit the streets and share the news. Find that great listing that sold quickly and tell those neighbors. Find that home that sold for more than list price with multiple offers and tell those neighbors. The next great listing is right next door or across the street from the last great listing. You need to take action or be prepared to sit on the sidelines as others go and make money!
Just think of yourself as “opportunity”. Get out and get KNOCKING! The business isn’t going to come and find you, you need to go out and get it! You will do more business if you talk to more people! When opportunity knocks, just answer the door!
Questions or comments please go to our website: http://www.improvemytomorrowcoaching.com
Sign up to have my weekly blog emailed to you!