28 AUGUST 2010 VALLARTA REVIEW by MONTY MERRELL

28 August 2010  VALLARTA REVIEW

BY MONTY MERRELL

THERE IS NO QUICK EASY FIX FOR THE REAL ESTATE MARKET.

Our REMAX office mix of buyers and sellers has been over the last eight years has been 70% US citizens, 25% Canadian and 5% Mexican Nationals. In the recent past year more buyers have been Canadian. Most sellers here still have the attitude that I am not desperate to sell. I can wait till I get my price they will say. This is because most of the sellers bought real estate here as second home PAID CASH and want a warm place to be in the winter. While the sellers are holding on to their prices here not willing to even think about loosing money. This younger crowd in the real estate business thought it was only up, up and away with the prices going up every year.

While at this moment I am seeing from web site analysis very few searches for those 800k USD to 2 million dollar condos. Other top local realtors have reported the same results to me because some of the more expensive condos that they have listed have had few showings this year from prospective buyers. And I say ditto as well.

So I see that when you take 70% US Citizens that used to be your buyers out of the market why we are experiencing slow sales. This is also being felt by most of the developers as well.

The USA is in a big mess because of many decisions and laws that made public policy years ago. We can put the blame on Congress and their selfish greed to receive money from corporations to be elected putting the interest of Wall Street above the interest of the people. The USA has too much real estate inventory, too many people with loans underwater because they owe more money on their mortgage than the current appraisal of their home. Makes you feel sick to your stomach. Congress did nothing to stop outsourcing, plant closings, and too many corporations moved out of the USA for foreign lands because they could increase the bottom line. It is always the same with Wall Street the bottom line with no regard for the 'Joe the Plumber' the guy on the street. Now we have too many people unemployed and few new jobs being created. The too big to fail banks get bailouts (the gold mine) and the people get the shaft. The banks make the money on the good loans and the taxpayer pays the bad loans. How sweet is that for Wall Street?

Many economists are saying for the USA real estate market we are not at the bottom yet and in fact slower July 2010 real estate sales expected. Another huge financial USA bailout will be in the commercial real estate.
Guess who owns Chick-Fil-A?
The USA real estate market has signs that the stabilization is fragile.
Why is the US market plummenting?

Miss Mexico now Miss Universe, yeah some good news for Mexico.

When you read about the likes of WARREN BUFFET selling bond holdings and municipals as well do you think he sees that the bond market is headed for trouble? The Great American Bond Bubble  - If 10-year interest rates, which are now 2.8%, rise to 4% as they did last spring, bondholders will suffer a capital loss more than three times the current yield. On a thirty year bond if interest rates go up one per cent then you would lose 10 percent of your principal amount, if you cash out, tricky but ask your broker or financial advisor to explain if you do not understand this risk with your bond investments.

Another sign of the times in the USA is bankruptcy filings have reached the highest level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just below double digits. There were 422,061 bankruptcy filings between April and June, according to the Administrative Office of the U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier. For the year ended June 30, there were 1.57 million bankruptcies, up 20 percent from 1.31 million a year earlier. Consumer bankruptcies rose 21 percent to 1.51 million, and business bankruptcies rose 9 percent to 59,608. 

The Other Housing Indicator 

For others thinking to build GO GREEN MOTHER NATURE NETWORK BUILDING, PRODUCTS, SERVICES, SUPPLIES, NEWS, RESOURCES, MORE
 
 

Charles Samuel Greenwood a Canadian. Greenwood has been working on a human-powered vehicle concept for decades, and all of his hard work is coming together in the form of the HumanCar Imagine PS.

you can reserve one humancar for $15,500 USD

and this is the reason one day you may be walking because you don't have one ..... 

EMP – Electro Magnetic Pulse will likely rock our world one day.

The issue of EMP dangers to the Earth – either from a CME, a coronal mass ejection, which is an eruption of power from the sun, or from a nuclear-triggered EMP wave intended to destroy a society – have been the subject of multiple reports in recent report just days ago that the U.S. House authorized plans to defend America's power grid against such dangers, but the Senate left citizens to fend for themselves, eliminating the contingency plans.

One EMP attack could leave nine out of ten dead in the U.S. because our lives and food depend so much on the fact of refrigeration of meats, fruits and vegetables that must be kept cool or in days = NO FOOD.

If you had no electricity for an extended period even a few years would you want to be near the ocean, in a tropical area full of trees with editable fruit to eat like mangos, bananas, lime and for the grilled fish. Or would you rather be stuck in Ackron, Ohio or New York City? It would be hard to imagine the hardship people would endure if the lights went off for an a year in any big city that is why the writer mentioned 9 out of 10 people would die.

IF THIS HAPPENED WHERE WOULD YOU RATHER BE IN PUERTO VALLARTA WITH THE JUNGLE AND MOUNTAINS NEAR THE OCEAN IN A WARM TROPICAL CLIMATE?  I WOULD RATHER BE HERE WHAT ABOUT YOU?

Monty Merrell, Realtor RE/MAX Mexico
"Professional, Prepared and Promises Kept!"
Member RE/MAX International since 2002
Member AMPI since 2003
Certified Real Estate Agent, Conocer, Mexico 2004
Member National Association of Realtors

RE/MAX Sites Marina, Each Office Independently Owned and Operated
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Phone   Mex Line 52-322-116-9781
Toll Free from US and Canada 1-800-582-2174  US phone 1-903-221-0308 and 1-312-912-9012

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-- Robert Jarvik, Developer of the Artificial Heart --