Now I hope the negative media is not bringing you down, because the news will report on whatever brings in the most viewers, meaning extremities. I have compiled some exciting facts/statistics from Brian Buffini’s website. This will help you realize that instead of panicking about the economy, to use this Recession as an Opportunity.
US ECONOMY / REAL ESTATE FACTS:
- The US is still #1 in GDP (Gross Domestic Product) at 14,330,000,000,000 which makes up more than the 3 countries that follow behind combined: Japan, China & German.
- Approximately 30% of all homes in US are FREE & CLEAR.
- Of the 70% of households that do have a mortgage, 96% are not in foreclosure.
- When mortgage rates fall to a record low, housing affordability surges to a record high.
- The Housing affordability index is at the highest level of affordability in 20 years. (National Association of Realtors)
- As of Jan. 2009, the Housing affordability index hit 166.8. This means that a typical household earning the median family income $59,821 would have 166.8% of the qualifying income to purchase a median-priced existing single-family home $169,900 with a 20% down payment-the highest level of housing affordability in history.
- First-time buyers can get a tax credit for as much as 10% of a primary residence purchase (up to 8,000) as part of the recently passed Economic Stimulus Bill of 2009.
In 2009 now, We are NOT even Near a Depression
- In 1929-1939, Unemployment rate: 25%
- 2009: 8%
- In 1990, there were 653 failed banks and S&L
- 2009: 8 failed banks, not one person has lost money out of their accounts.
Our Economy may be in Recession. But it is an opportunity for individuals and families to humble themselves & learn to start saving money.
- In 2000, Americans took $26 Billion in equity out of their homes
- 2004: It had risen to $139 Billion
- 2005: Up to $450 Billion
- 2006: Up to $620 Billion
42% of this went to Consumer Spending or to pay off consumer debt!
Do we really need those extra plasma TV’s and cars?
Recession Really is a Terrible Thing to Waste
I find that my business has grown the most during this time. Competitors who did not take the industry seriously have been weeded out. This is the time to work harder than ever. To gain product knowledge/learn your business. Re-invent yourself, improve client relations, provide value, stay updated daily with rates/government plan (ignore the negative media) and ask for referrals!
Remember, Optimism is a State of Mind