FACT vs. FEAR

FACT vs. FEAR

Here are some bullets about our housing market that should dispel some of the myth in the media, the fear of the market, and the speed at which this market could turn around:

•·         76,000,000 Homeowners in the USA

•·         24,000,000 Of those homes are owned free & clear

•·         52,000,000 Have mortgages in place

•·         97.2% Are not in foreclosure

•·         93.8% Are current

•·         20% Owe more than the value of their home

•·         40% Of the foreclosures are not owner occupied

•·         $11.7 Trillion of American's wealth is in Money Markets, CDs or Treasury Bills

Sounds like a lot of us are hard working, saving, responsible Americans.

What about the GREAT DEPRESSION vs. 2008?

•·         In 1930 1000 banks failed

•·         In 2008 14 banks failed

Here are some facts about the residential market in the US of A:

•·         In the 1970s we averaged 3,000,000 residential transactions per year with a high of 3,900,000

•·         In the 1980s we averaged 3,300,000 residential transactions per year with a high of 4,000,000

•·         In the 1990s we averaged 3,900,000 residential transactions per year with a high of 4,900,000

•·         In the 2000s we averaged 5,600,000 residential transactions per year with a high of 7,200,000

I would argue values in our market were artificially inflated by extremely liberal financing terms.  What are your thoughts?

Information obtained from sources believed to be reliable,

 but no guarantees are inferred by its publication.