It’s time we admit that we’re addicted…….to the news. Let’s face it, they’re doing a great job of cherry picking what makes headlines. It’s amazing how on a daily basis they become the Breaking News “Crisis Centre”, “Storm Centre” and anything else that they can keep you coming back for more punishment.
Many experts wrote about how we’re more independent from the U.S. Market and the last 1.5 years has shown that we’re not. We’re part of a global economy and as the U.S. goes, so do we. It has also been reported in hundreds of articles that our financial system is in much better shape and this is true because home ownership has not been based on entitlement. Borrowing is more regulated and you need to work hard and save for a down-payment. Because of this we have been and will be able to weather the majority of the financial storm. More good news is the people that I have talked to south of the border have shared some amazing numbers that shed some light and allow us to look at the glass half full.
- There are 76 million households in the U.S. that own their own home….and 24 million of those homes are free and clear;
- There are 52 million households with mortgages…97.2% of those are not in foreclosure, and 93.8% of them are current on their payments;
- 40% of foreclosures are non-owner occupied
Let’s remember that since loans in the U.S. had come to a screeching halt, construction stopped and because of this as demand returns supply will be constricted for some time. If not already, banks will start lending again because this is the only way they make money and we will see a month over month improvement by mid 2009. Doesn’t this remind you of 1995 or 1996 just before our long run?
As the saying goes “If only I knew then what I know today”
RE/MAX Ultimate Realty Inc