- Joined
- Nov 20, 2009
- Messages
- 23
Hi there, just wanted to open a forum to share/monitor news on the USA economy as it looks like there should be an imminent drop in real estate prices again, the question is when. Rich Dad author forecasts the market to really show in 2011, but the pressure definitely seems real south of the border.
As someone who is not seeing screaming growth in my own revenue/business stream I worry about over extending myself and would be really curious if anyone has the same type of information for our Canadian crowd.
First article to share from http://www.planbeconomics.com/2010/09/22/t...s-just-started/
Quotes:
A recent quote from the Walmart CEO during a Goldman Sachs conference about midnight baby formula bread lines says it all:
QUOTE “I don’t need to tell you that our customer remains challenged…You need not go farther than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m. customers start to come in and shop, fill their grocery basket with basic items – baby formula, milk, bread, eggs – and continue to shop and mill about the store until midnight when government electronic benefits cards get activated, and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.”
“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”
And
QUOTE “In our latest forecast we had them dropping 8 percent, but this number was a lot bigger than I thought it would be,” says Patrick Newport over at IHS Global Insight. “So I think maybe a ten percent drop over the next year.”
Newport thinks that the market is actually overcorrecting, just as prices overshot on the way up. He says houses are pretty fairly valued now, and yet prices are still dropping due to weak demand and a large volume of foreclosures. Think about it: We have a 12.5 month supply of homes on the market right now and about 7 million homes where folks aren’t current on their mortgages.
(Source: CNBC)
Question for the curious mind:
1) How many homes in Canada aren`t current on their mortgages?
2) What is the normal number of people not current in their mortgages for these countries during the last 5 years (to compare against the norm)?
Thanks for your comments and feedback.
As someone who is not seeing screaming growth in my own revenue/business stream I worry about over extending myself and would be really curious if anyone has the same type of information for our Canadian crowd.
First article to share from http://www.planbeconomics.com/2010/09/22/t...s-just-started/
Quotes:
A recent quote from the Walmart CEO during a Goldman Sachs conference about midnight baby formula bread lines says it all:
QUOTE “I don’t need to tell you that our customer remains challenged…You need not go farther than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m. customers start to come in and shop, fill their grocery basket with basic items – baby formula, milk, bread, eggs – and continue to shop and mill about the store until midnight when government electronic benefits cards get activated, and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.”
“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”
And
QUOTE “In our latest forecast we had them dropping 8 percent, but this number was a lot bigger than I thought it would be,” says Patrick Newport over at IHS Global Insight. “So I think maybe a ten percent drop over the next year.”
Newport thinks that the market is actually overcorrecting, just as prices overshot on the way up. He says houses are pretty fairly valued now, and yet prices are still dropping due to weak demand and a large volume of foreclosures. Think about it: We have a 12.5 month supply of homes on the market right now and about 7 million homes where folks aren’t current on their mortgages.
(Source: CNBC)
Question for the curious mind:
1) How many homes in Canada aren`t current on their mortgages?
2) What is the normal number of people not current in their mortgages for these countries during the last 5 years (to compare against the norm)?
Thanks for your comments and feedback.
