Doing a deep dive into the impact that the slowing real estate industry is experiencing translates into fewer purchases, less inventory, and continued overhead costs. Much of the business has gone digital and such platforms, in order to be maintained, will remain fixed. Social media platforms, email, mailings, Google advertising, Facebook advertising, websites and even security measures are usually fixed costs.
One of the niches in the real estate industry that is feeling a great deal of pressure is the mortgage business. The mortgage industry has literally gone from feast to famine in the short period of 2 years. In some ways the loan business can be broken into 30-year fixed mortgages, refinances and HELOCs.
But as inventories have shrunk to 25% of what they were just 4 years ago, the number of transactions has also fallen proportionately.
According to several articles, sellers are not selling at this particular point, and buyers are waiting for prices to come down to a more reasonable level.
Some loan officers are scouring the market for individuals who are being forced to move either by retirement, job relocations or other reasons.
In addition, because of the increase in the prime rate, home renovations, which had been very active, have slowed down. Potentially if this particular trend continues to be prolonged, the reverse mortgage business may come into favor.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/