How do we know what’s ahead for our area, Cancun-PDC-La Riviera Maya, real estate market. Well, Perhaps the most bullish indicator for U.S. housing is Warren Buffet.
Let me emphasize that NorthAmerican (USA and Canadian) citizens and legal residents are the main source of foreign buyers and investors in our area, so whichever direction the USA market, and consequently the Canadian economy goes, so does the local real estate market. Therefore, here is an article I just came about that might be a good indicator of what departs us for the near future in terms of real estate sales in our area.
I hope you enjoy it, and it gives you confidence needed to invest in our area, so far the most Cost Effective Investment you would ever make in Mexican Real Estate.
And don’t forget to contact us for any real estate info
you might required.
We will provide you with the best Real Estate Experience you have ever known.
We will provide you with the best Real Estate Experience you have ever known.
Warren Buffett Just Made A
Huge Bet On The US Housing Market
The legendary investor has been buying up
real-estate brokerages around the country as he bets on a housing turnaround.
Now, he is partnering with Brookfield Asset Management, a Canadian real-estate
investor, to more than double the size of his brokerage business.
Berkshire’s HomeServices of America Inc.
unit will be the majority owner of the venture to manage a U.S. residential
real-estate affiliate network, according to a statement on the new company’s
website. The firms plan to offer a new franchise brand, Berkshire Hathaway Home
Services, starting next year. Brookfield’s network has operated under the Prudential Real Estate and Real Living
Real Estate brands.
Berkshire’s managers have been
positioning the firm to benefit as the U.S. home market recovers from its worst
slump in seven decades…
…Buffett has been public about his
bullish housing call for a while as he's built his residential real-estate
brokerage business, but this is a big addition.
Buffett’s Outlook
Buffett, 82, said in July that the U.S. home market was
beginning to improve. Berkshire’s billionaire chairman and CEO tracks economic
activity, in part, by studying the results of the company’s more than 70
operating businesses including ones that build manufactured homes, make paint
and sell insulation.
“It was just a question of getting households in balance
with” the supply of homes, Buffett told Bloomberg Television’s Betty Liu in a
July 13 interview. “That happens in different paces in different parts of the
country, but you have seen a much better balance developing here in recent
months. And that’s why you’re seeing some pickup in prices in places.”
Housing prices rose 2 percent in August from a year
earlier, the biggest gain since July 2010, according the S&P/Case-Shiller
index of property values in 20 U.S. cities. The number of homes for sale in the
U.S. dropped 18 percent last month from a year earlier, according the National
Association of Realtors website.
Borrowing Costs
Federal Reserve policy makers have said they will keep
borrowing costs near zero to help stimulate the economy. That’s led to near
record-low interest rates on home loans. The average rate on a 30-year fixed
mortgage was 3.63 percent, the Mortgage Bankers Association said last week.
The new company, HSF Affiliates LLC, will have a combined
network of more than 53,000 agents operating in about 1,700 U.S. locations and
who generated $72 billion in sales last year. The network will give
HomeServices exposure to markets such as New York, Boston and Northern
California, Peltier said.
Hurricane Sandy, which made landfall in New Jersey this
week, may decrease inventory in the Northeast as homeowners assess damage,
Peltier said. The storm battered homes in coastal states that account for about
one out of every five U.S. real estate sales.
“Short-term, it makes properties harder to sell when
parts of neighborhoods have been devastated,” he said.
No comments:
Post a Comment