As reported by CNBC and ATTOM Data Real Estate Solutions, America is currently 5 million homes short. Continuing their reporting, approximately 12.3 million American households were formed from January 2020 to June 2021, yet only 7 million new and available (flipped) family homes were built.

Single family home construction is running its slowest pace since 1995. With a population running about 330 million, this requires about 5.24 million additional homes to meet demand.

The medium price of a first-time home buyer is about $300,000 and the median price of a flipped home is approaching $250,000. Gross margins rose from $69,000 to $73,750.

So what does all this mean for Lions Mane Financial?

• Performance in 2022 is forecasted to be similar to the past 2 years – demand has only increased. 
• Rent to buy trends from 2020/2021 will continue into 2022. 
• Mortgage rates are expected to increase slightly, from 3.25-3.6%. With this slight increase, rates are still historically low meaning the ability and attractiveness to buy houses will continue at current rates. 
• Zillow reports home values will rise by 11% in 2022. 
• First time homeowners will continue to be attracted to lower priced homes ($300,000); which flipped homes continue to be a major satisfaction of this demand. Also, the rent to own market segment is dominating purchasing flipped homes. 

All of this, as well as our existing borrower base, which at any given time is made up of two-thirds repeat borrowers and one-third new borrowers, positions Lions Mane Financial for growth into 2022.

In our next segment, we will dive into the financial trends of Lions Mane Financial. Stay tuned! We have a great story to tell in this area as well.

Mark P. Andreotta
President
Lions Mane Financial aka Hard Money2Go