COMMENT ON THE US MARKET GENERALLY

We have just attended a function put on by the NAR welcoming all the international realtors to the conference.
Attendees from 55 countries.
We had opportunity to speak with a variety of Realtors from around the US, the sentiment differs greatly from State to State, and even different markets within a State.
Some general statements -
1) Overall the market seems to be down 38% from its peak 2 years ago
2) In areas where there is foreclosures and mortgage stress it is possible to purchase excellent property at a discount approaching 50%, expecially if more than 1 property being purcahsed
3) Then there are the markets that are very challenged, it is in these areas that we see the prices that are very very low with the properties needing rehab.
4) Then there are areas like Detroit, probably the worst hit, prices are at giveaway levels.

There is quite a lot of optimism amongst the realtors we spoke to, all agree that there have been very challenging times, none were foolish or brave enough to say the market was at the bottom, however most agree that if not at the bottom, it is near the bottom and there are excellent buying opportunities.

I had been told that the bulk deals with the banks were reducing as banks could achieve a better outcome negotiating deals on an individual basis. I find this is not so, that there are still banks and consortiums of banks who want to deal in the large volumes of sales without getting the local realtors involved. It seems to me that Banks just want to get these properties off their books, at what ever cost. I will be persuing this further.

It also seems where there is a non profit organisation linked to the transaction the Banks are giving added favour with pricing. There is not problem in us setting up such a link.

There is still a lot of work to do, but in the US at the moment there is some great opportunities.