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by Enrique (Henry) Saldana
While my wife and I were watching TV that Sunday night, the breaking news of the killing of Osama bin Laden by US Navy Seals was being broadcast. Remembering that I was at my Mortgage Broker's Class when the September 11 tragedy occurred and the reaction on everyone there and all over the country thereafter, made me and my wife feel very relieved to hear that the head terrorist who had ordered the attack was no longer a threat to anyone in this world, any longer (NO MÁS).
I do not want to speculate on what is going to happen next in terms of international terrorism, nor am I interested in getting wrapped up in the political landscape of the USA in the immediate future. I however would like to say what immediate effect this historic event might have on our local economy.
It is a well-known fact that, even though we do have a big influx of Canadian, European, South and Central American, as well as Mexican National buyers in our area, the bulk of the sales in terms of second homes as an investment property, generally speaking, comes from Americans. Therefore there is importance of what immediate effects the killing of Osama bin Laden will have on the US Economy.
Well, there are several economic indexes that are important in every economy that need to be considered in order to determine whether it is a strong or a weak economy. One important factor with a high coefficient of effect in the US economy is Consumer Confidence. And with consumer confidence comes consumer spending.
Here are some of the most immediate reactions we are seeing as a result of this major event:
Bin Laden is Dead: US Stocks Rise (click to read article)
The death of Osama bin Laden, the most wanted man of our times, is met with joyous response in the U.S. More specifically, however, the dollar advances, stocks rise, and the price of oil slides, placing a slew of positive responses to the accomplishment of a major goal.
A Mexican economics analyst in one of the Mexican network channels says, "The impact that the killing of Osama bin Laden will have on consumer confidence in the USA, will prompt that economy to revitalize and it is no secret that Mexico needs a strong USA economy to grow also. Therefore, we should expect a turnaround in the USA economy in the months to come, and consequently in our Mexican economy."
How bad is our Real Estate local economy? Well, here is an interesting example:
A personal friend who happens to be a banker recently told me a story that made me realize how bad the situation is. He told me of a recent event that occurred to him. He found a person standing at a stoplight intersection in Cancún handing out flyers with information about a property for sale. "I have done that," I replied. But he continued to tell me that the person handing out the flyers was none other than the owner of the property. "That is shocking," I said. He told me that while being handed the flyer, the individual told him why he was doing this and what he said was, "I have given the property for sale to almost every real estate office in town and no one has being able to come up with a buyer. So I decided to do it myself." So, here is a desperate and determined individual that is not willing to give up on his goal. But also, it is an example of the presently struggling real estate market situation we are facing in our area. I could relate more similar stories to you, but we would not have enough space in this article for all of them.
So here are two important questions to consider: Are we looking at a rebound of our local real estate economy based on the above-mentioned facts? Or, will this recent consumer confidence euphoria just wear off with time?
This article courtesy of Enrique (Henry) Saldana
Mortgage, Real Estate, and Business Consultant
Mexico Realty Solutions – Mortgages "R" uS: A True One Stop Real Estate Company in Mexico. Feel free to contact us at: moneylendingbus@hotmail.com, www.mexicorealtysolutions.com
Tel: 984-147-0100
Cell: 984-111-8743
Skype: Henrys1955
And check the new Mexico MLS Network system: www.mexicomlsnetwork.com. Nous Parlons Français!!!
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