Thursday, January 14, 2010

U.S. Real Estate Woes Continue

While the overall Canadian real estate market including activity locally showed renewed strength in the final quarter of 2009, the same cannot be said for our neighbours in the U.S.
The U.S. economy continues to struggle its way towards a recovery and has yet to generate any traction in the all important area of job creation. Many Americans even those with conventional low risk mortgages are under the threat of losing their homes in the next year or two the result of being unemployed. This has now spilled over into the two other segments of the U.S. real estate market as well.
The commercial real estate market is under great threat of collapse. As tenants go bankrupt, out of business or just start to close unprofitable retail locations etc. many investors with significant holdings in commercial real estate are going to incur massive losses. PriceWaterhouseCoopers believe that 2010 will be the worst time in 30 years for commercial property investors in the U.S. to sell their holdings. The question on every one's mind is what impact this will have on the housing market?
In short, this creates the potential for bad news in the luxury residential market. Investors, brokers, builder/developers, tenants and others that are engaged in some aspect of the commercial real estate market are often the buyers and sellers of luxury homes as well. If he commercial real estate market suffers any significant fallout stemming from the ongoing recession being experienced in the U.S. the luxury home market will be sure to take a hit as well.

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Royal LePAGE Locations North (Brokerage)

330 First Street, Collingwood, ON L9Y 1B4


Direct: 705-443-1037

Office: 705-445-5520 ext 230


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Rick relocated to Collingwood from Toronto in 1985 through a transfer with Goodyear Canada. In 1987 Rick was recruited by a major client of Goodyear’s, managing their Canadian business based in Barrie before moving to Chicago in 1992 as Vice President of Sales & Marketing. Upon returning to Canada in 1996, Rick ran an industrial products manufacturing company in Stratford, Ontario. In 1998 Rick returned to Collingwood with his two children. Rick is a licensed real estate Broker with Royal LePAGE Locations North in Collingwood and holds his MVA designation (Market Value Appraiser-Residential). He is an active volunteer in the community serving several years on the Board of Directors with the Collingwood Chamber of Commerce as Treasurer, 6 years on the Board of Directors for the Southern Georgian Bay Association of REALTORS® of which he is the Past President (2008) and currently serves on a committee with the Ontario Real Estate Association. Rick is a diverse executive manager with extensive experience in strategic planning, manufacturing, finance, human resources and quality assurance management.