My “Compadre” and I always have some kind of discussion and disagreement with regards to the way the world economy is moving. It is obvious that the thermometer for that is what is happening in the real estate market.
He seems to think that we are still under a tremendous economic meltdown, and I, on the other hand, I like to believe we are coming out of the so called “worst recession”, or economic downturn, in our lifetime.
Yes, I have seen many small real estate companies in the area disappear (close), and other “big” name companies downsize, as the economic downturn has hit more closely to home. There are also some developers whom have being hit by this economic meltdown (downturn). There are those that are in total disarray, and there are those whom have being able to adjust and through offering purchasing incentives have being able to “weather the storm”, so to speak.
But perhaps we should also look into the contingency aspects of these companies and why they have failed to remain in business under the current economic situation.
In a good economy, primarily in a real estate “boom”, anybody can sell real estate; while in a “crunch” economy, only those that plan and prepare for “difficult times” are the ones to remain strong and endure. They will become stronger when this economic cycle fulfills its term and moves into its next cycle.
So let me give you some statistics and let you be the judge:As of today, Dec. 1st. 2010, we have had some developments is the area sell most of their inventory, even in Pre-sale, e.g., Shian-Ka´an in Puerto Pricipe.
There are two several new developments started between Tulum and Playa del Carmen in the last few weeks, e.g., Heliko in Playa and a Kahua Condo project in Tulum.
There continues to be a trend of Americans and Canadians moving into the area, according to the two lenders funding those groups purchasing property in Mexico (Compass Bank and Scotiabank).
The USA economy is at a rebound. “The worst of the recession is likely behind us, some editorials say, but the economy still faces numerous hurdles”.
Now, which scenario prevails depends on the collective psyche. The difference between a typical recession and the current downturn is the loss of faith in the economy. That investor sentiment has taken on a brighter tone in recent weeks and is thus encouraging. And, although, Investors don't always get it right, but with the massive monetary and fiscal stimulus taking hold, the dark cloud hanging over businesses and consumers should soon begin to lift and job losses fall.
Therefore, whether the economy glass is half full or half empty, depends merely on the eye of the beholder. As Don Ramon de Campoamor once said, “Y es que en el mundo traidor nada hay verdad ni mentira, todo es según el color del cristal con que se mira”. Which translates somewhat into; “It is because in our controversial world nothing is true or a lie, everything is the color of the crystal (glass) we see it through”.
So you make your own conclusions. Is the world economy on a rebound? Or, are we still under a deep economic downturn, a deep recession? Let us know what you think.
No comments:
Post a Comment