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State of Notes Market macroeconomics 2024

From Tracy Z Rewey at noteinvestor.com.

I think we could use a topic on marcoeconomics or the economy in the forum.

The fine people at Aspen Funds talk about riding the tide rather than waves. Buying any house in 2012 was a better decision than paying $100k over asking price all cash on anything in 2022.

Creative Owner Financing Grew in 2023 – But, By How Much?

March 29, 2024 by Tracy Z 1 Comment

Seller Financing had a great 2023! We saw a 7.3% increase in the creation of owner financed notes and a 24% increase in dollar volume.
Check out the owner financing stats for the past year and how that affected the note industry.

Here are some numbers at a glance…

  • $28 Billion in seller-financed notes were created in 2023 (up from the $22.5 Billion in 2022).
  • 89,773 Transactions were owner financed (up from the 83,647 in 2022).
  • $125 Billion in owner financed notes were created in the past 5 Years (2019 to 2023).
  • March saw the highest creation of notes at 8,090. February saw the least with 6,577.
  • Sellers creating one note in 12 months made up 86% of the seller carry notes.
  • 67% of transactions were created in just 10 states.
  • The average Loan-to-Value (LTV) went up for commercial and land notes, but down for residential notes:
    • 74% LTV on new Residential notes (compared to 75% in prior year),
    • 72% LTV for Commercial, (up from 66% in prior year), and
    • 70% LTV for Land notes (compared to 68% in prior year).

 

https://noteinvestor.com/notes-101/creative-owner-financing-grew-2023/