I think you’ve probably heard me say that I believe the mindset of Americans has changed and that many have given up on the dream of the white picket fence. In reality they have become a nation of renters.
From CNNMoney this morning: “Foreclosure filings experienced their eighth straight month of declines, according to RealtyTrac.
In May, filings fell 33% from a year earlier and 2% month-over-month, according to the online marketplace of foreclosed properties. The number of homes that were repossessed (referred to as REOs or real estate-owned properties) in May also declined to 66,879, down 3.8% from April and 29% year-over-year, the firm said.
The huge year-over-year drop in foreclosures doesn’t necessarily mean the housing market is staging a recovery, however.
The banks can’t sell the homes they’ve already seized so they aren’t as incentivized to repossess more homes.
There’s weak demand from buyers, making it tough for lenders to unload their REO inventory. Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”
What that really means is that it’s a great time to invest in U.S. Real Estate. The banks hold hundreds of thousands of homes that they desperately need to get rid of. And Americans aren’t buying because frankly, the American Dream has been stolen. Even though that’s a very sad statement, it creates a huge opportunity for Canadians looking to buy U.S. real estate.
Your thoughts and comments are always welcome!