Just when you thought it couldn’t get any better for Canadian investors in U.S. real estate, a report published just moments ago confirms what my team has been saying all year.
The updated housing predictor indicates “the average US home is projected to decline 7.1% in value in 2011, a major downgrade since earlier this year.” It goes on to say that the “national forecast reflects a greater national decline in home values for the year. The forecast issued early in the year was a lesser 4.8% average. But especially hard hit areas in the U S including California, Florida, Nevada, Arizona, Michigan and other states have encountered a growing inventory of vacant properties that aren’t yet in the foreclosure process, and have been left for lenders’ to formally repossess.”
The report also goes on to say “Homeowners in many areas that weren’t as seriously affected by the fall-out are walking away from mortgages in greater numbers as a result of being in negative equity. Lender Processing Services, a real estate research supplier to the mortgage industry reports 30% of mortgages are in negative equity. Some 35% of upside down mortgages have Loan-To-Value ratios of more than 150%.”
What that means for you and I as Canadians is that the opportunity continues to grow. In addition to millions of foreclosures, there are literally millions of homes now available as a result of people just walking away before foreclosure.
The perfect time to buy! The perfect time to invest! The perfect time to take advantage of a huge surge in the demand by Americans looking for places to rent!