CHANGES IN THE METHODS OF RESIDENTIAL REAL ESTATE FINANCING AS RELATED TO CHANGES IN SELECTED NATIONAL ECONOMIC FACTORS 1976-1982 (FINANCE, REAL ESTATE, ECONOMICS).

摘要

The Problem. The problem of this research addressed changes in residential real estate financing over a seven year period and an examination of selected economic factors which interacted with those changes. Residential real estate financing was grouped into three major categories: conventional loans, government-backed loans, and seller participation loans. Ten national economic factors were selected: the prime rate, mortgage interest rates, new housing starts, the average price of single family residences, housing sales volume, total new construction expenditures, the Consumer Price Index, the Gross National Product, National Income, and Money Supply, M(,1).Results. Data analysis revealed that Americans were changing their methods of financing residential real estate during the period 1976-1982. The total number of conventional and government-backed loans dropped sharply during this time while the number of seller participation loans increased dramatically. Rampant inflation, as measured by the Consumer Price Index, the prime rate, and Money Supply, M(,1), was observed to significantly interact with changes in the methods of residential real estate financing. With the reported rise in the cost and availability of money an alternative source of financing emerged: the home seller.Method. The research was a document study. The instruments used for collection and codification of data were definitional paradigms. The data were analyzed using inferential deduction and correlation statistics.