Interesting times in the real estate world and note world. Quick look:
In residential real estate, mortgage rates are fluctuating, sales are down, prices are down overall but up in some areas. The economy is cooling. Some potential buyers are on the sideline – reluctant to get into the game. Why? Are they reluctant to sell because they do not want a new home with a mortgage at these higher rates? Are they afraid to buy in this market? Are they playing the waiting game? Are they just stifled and afraid to make a decision?
Uncertainty is a killer!
On the commercial side we can’t escape the bad news. The pandemic caused a huge change in people’s attitudes and behavior about work. Some big city landlords have been faced with interest rate surges, office vacancies and falling property values. Analysts predict more vacancy as leases expire and tenants do not renew. They say 50,000 retail stores will close in the next 5 years. Bed, Bath & Beyond is bankrupt and will close all 360 stores.
Uncertainty reigns!
The note business may benefit from this uncertainty. Reluctant sellers and buyers may come together if the seller is willing to carry the note for what he considers to be the appropriate buyer. And, should that seller decide to sell his note, we will be ready to help by buying it and playing our proper role in the real estate economy.
