AgentIndustry News

Real estate realism vs. optimism

Road to recovery is long and winding

Despite the growing optimism regarding the recent uptick in the market, there is no getting around the underlying foreclosure outlook for U.S. residential property.Cliff Bowman, the Vancouver, B.C.-based marketing expert who turned pre-selling condominium buildings into an industry art form, pointed to data by credit bureau Equifax and Moody's showing that recent home price declines have left 24 percent of all homes in the U.S. with debt that is greater than their value."People in Canada are in a better situation," Bowman said. "I don't know why that is ... perhaps they were better prepared."That "preparation" had a lot to do with the Canadian mortgage system. One of the reasons our friends north of the border may be in a better equity situation is that Canadian lenders have historically required more skin in the mortgage game.Not only have downpayment guidelines been more stringent, but there also is no mortgage interest deduction on federal income taxes ...