It’s only natural to wonder how a recession would impact the
housing market. Surprisingly, home values do very well during
recessions. The historical chart below illustrates this. The reason
is likely because the decline in interest rates helps to offset the
slowdown in economic conditions.
Barry Habib is an American entrepreneur and
frequent media resource for his mortgage and
housing expertise. Barry has had a long tenure
with monthly appearances on CNBC and FOX.
Barry is the CEO of MBS Highway, a
company and platform created to help
mortgage professionals and Real Estate
Agents articulate the opportunity in the
housing market for their clients, along with
a better understanding of the interest rate
environment.
While rates may decline in the future, the competitive
environment and margin compression can still present a challenge
today. Your presentation skills are more important than ever.
Let’s look at an example:
Barry Habib was just named the top Real Estate
forecaster by Zillow and Pulsenomics and has
been presented with the Crystal Ball Award for
the most accurate Real Estate forecasts out of
150 of the top economists in the US.
Say your rate is 5 percent, but you’re competing against a rate
of 4.875 percent. Everyone knows that 4.875 percent is better
than 5 percent. How can we better overcome this obstacle? The
first thing is to break it down for the customer. On a $300,000
loan, the 1/8th percent difference equals $21 per month. Or a
better way to discuss this is to illustrate that it’s only $4.85 a
week (4.33 weeks in each month). This translates to just 69 cents
a day.
Barry has had many successful businesses that
he has founded, grown, and sold. This includes
Mortgage Market Guide, Healthcare Imaging
Solutions, and Certified Mortgage Associates.
During Barry’s mortgage sales career, he was
recognized for having the highest annual
origination production in the US on two
occasions. Barry personally originated over
$2 Billion in mortgage loan production over his
career.
Think about it. If you received an extra 69 cents a day, would
you feel empowered to go buy a Mercedes-Benz? A boat? Take a
vacation? Or what if you lost 69 cents a day? Would you no longer
be able to purchase that big screen TV? Could you no longer go out
to dinner? Could you now not afford to go to the movies? Would
this change impact even one decision in your life? For virtually
everyone, the answer is no. So then why is your customer making
you crazy over this? Refocus them on what’s important and the
wealth that home ownership will create for them.
He is also the Lead Producer and Managing
Partner for “Rock of Ages” – a Broadway
musical theatrical production, which was
also released as a major film starring
Tom Cruise. Barry also plays the part
of the record producer in the movie.
For over 20 years, Barry has been a well-known
professional speaker on the financial and Real
Estate markets.
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