In this November 2022 housing market update, Joe Homs (with over 40 years of real‑estate experience) explains how the Federal Reserve’s aggressive rate hikes have pushed mortgage rates to around 7‑7.25% and could climb to 9‑10% in the coming months. He draws a parallel to the 1980s when rates hit 14‑16% and inflation was similarly high, underscoring that such environments are not unprecedented. To help investors, agents, and sellers navigate these conditions, he outlines creative financing tools—including seller financing, subject‑to deals, novation agreements, and carry‑back financing—that can sidestep costly bank loans. He also promotes proactive prospecting, linking to a separate video on door‑knocking with four practical tips for finding deals on the ground. Throughout, he urges viewers to focus on fundamentals, know their numbers, and stay active despite market uncertainty.
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Today I'm going to give you a housing market update as of November 2022 and how to prepare for what's to come. Coming up next. If you've ever been to one of my in-person Orange County meetups, then you've probably seen my crystal ball. I like to joke because at the end of the day, nobody really knows. But luckily for you, I have over 40 years of experience and been through a few market fluctuations. Let's talk about it real quick. Quick, before we dive in, make sure that you like, subscribe, and share this video with your friends, anyone that wants to live the life they've always wanted through real estate. Let's talk about the market update. We are November 2022. The Fed is still going crazy raising interest rates, 3/4 of a percent. Uh, he talked about another 3/4 percent next month. And he did not say the word that I've been looking for, is, I'm going to stop. So who knows what's going to happen. Interest rates for housing is currently around 7%, 7.25%. I mean, honestly, I see it possibly going up to 9% or 10% in the next few months. That's how crazy they are getting with this market. This is not an unusual market. We experienced this market back in the '80s. Interest rates back then were 14 to 16%, and inflation was where it's at today. And the only way that they could reduce that was to raise the interest rates. And so that's what they did. And so you're looking at possible creative financing tools that you need to use as an investor, real estate agent, as a seller. And those creative financing tools are seller financing. So the seller takes back a portion of the purchase price as a loan to the new buyer. They negotiate terms, interest rates, and hopefully makes everybody happy so that you don't have to be paying so much to the bank. There's different ways to do it. You can do subject to, you can do novation agreement, you can do simple seller back carry back financing. However you want to structure it so that that new buyer coming in doesn't have to pay those high interest rates. Like I said, nobody knows what the future has in store, but we can make pretty good predictions based on past experiences and market data. Stick to the fundamentals and know your numbers. If you want to know something about what my team and I are going to do into the next year, click on this video right here. It's called door knocking, and I give you 4 tips When you hit those streets to get those deals, because they still are out there. Or feel free to reach out anytime. Always here to help.
