I just returned from Buffini & Company's two-day Turning Point real estate seminar in Sacramento, and wanted to share some of the statistics and information on the real estate market that Brian discussed. I always get so much out of these seminars, and love to share the information.
Newspapers and the cable news networks continue to talk about the foreclosure mess. And, it is indeed a mess, but the singular focus on this story is distracting from some other fascinating numbers and stories. So, this is a healthy reminder to have a little perspective on the market, and to look past the alarmist reports out of the media.
Did you know that as of July 2007, right before the subprime problems began to emerge, that about 97% of all mortgages were current? And that about 30% of all real estate was owned free and clear, unencumbered by mortgage obligations? The real surprise is that those numbers have not changed all that much in the intervening months. As of November 30th, 95.1% of all mortgages are current, according to Brian Buffini and his research.
Various forecasts predict that about 20-30 billion dollars are going to have to be written off because of foreclosures on subprime loans. That sounds terrible, but given that there are almost 10 trillion dollars in mortgages out there, that is less than 1 percent of all mortgages being affected by the subprime fallout.
It is a very complicated economic situation, so it is important to have some perspective on the big picture. But, keep in mind that the market is simply correcting itself. There are and will continue to be some negative results for some individuals and a ripple effect through some sectors of the economy. Yet, interest rates are terrific right now, There are some hot deals and motivated buyers out there, and it is a great time to invest in real estate for the future.
Of course there was so much more information to share and digest. Any comments from other attendees or interested parties?
Hi Mary,
Thank you for the great post... Happy Holiday to you and family.
Mary, you're absolutely right - but markets are determined by the perception of what's happening, not the reality...
Thank you for reporting the stats facts. Media has done more damage looking to tantalize readers with dramatic stories that sell. The problem is they are selling paper rag stories and tuning us back in to the fear peddling "at 11", and they have put the crippling negative spin on the housing industry.
I agree the market is in a process of correction. There truly are many houses, condos, and townhomes in America that are effectively worth 199K-399K and still offer proximity to metropolitan resources. Keep posting. The more we share information that is researched and coming from the basis of an educated opinion, the more we serve the general public.
Cheers!
Kae Davis
www.cbmove.com/Kae.Davis
Bad news sells! Can you even believe what the newspapers are printing? The market has changed, we are off to make another good year in real estate! Thanks Mary, we are heading to Orlando for the January TP. I have signed up for 3, hoping to complete the year 2008 with 6;) They really do make a difference, so, I am jumping in and going!