Published On: Thu, Mar 13th, 2014

US Economic Recovery on Track to Boost Future Property Values in Expat-Mexico

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March 13, 2014 RealtyTrac that foreclosure filings fell 27% year-over-year in February to a new seven-year low. U.S. Foreclosure Activity Decreases to Lowest Level in More Than 7 Years

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Why should we care?

As we described back in 2009, foreclosed homes are the last big piece of the economic recovery puzzle.   Since it takes roughly 2 years for governments to process foreclosure requests,  when a homeowner loses their job and stops paying on their mortgage,   the home does not hit the foreclosure market until 2-3 years later.  A foreclosed home then takes another 400 days (2013 average).  This means that the Bush deregulation-caused 2008 Fiscal Crisis damage and Bush deregulation-caused job-losses are finally resolving in 2014,  just as we predicted back in 2009  Merida Real Estate Predictions

So, just what does this have to do with us foreigners living in Mexico?  If you look back at our past articles, you find that a big backlog of foreclosed homes  were the last piece keeping unemployment high.   This means that the last big piece of uncertainty about personal finances for people considering retirement and visiting or moving to Mexico,  will diminish with decreasing unemployment and increasing home values.    With low numbers of foreclosed properties,  potential Boomer retirees will be feeling the optimism from the  personal wealth effects of not just a stock market at all time highs  ~ and ~ higher home values .

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Remember the Baby Boomers?
Baby Boomers: Retirement? Sufficient Savings? Their Likely Effects on Mexico?  pointed out that there are roughly 40 million Boomers who will be retiring with substantial savings and nice homes between 2014-2030, which takes us back to the point of this post:   The PREVIOUS backlog of foreclosed properties weighing down property values were the last item causing lots of worries about the economic future.

Now that the backlog of foreclosed properties is back down to a manageable level, we should see a nice surge of retirees checking out Merida, Yucatan, and the beach areas over the next 5 years => good growth in both tourism and in our real estate market from relatively affluent Boomer retirees.

Let’s make them welcome.

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Source:  YucaLandia/Surviving Yucatan.
© Steven M. Fry

Mexico Travel Care

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  1. We purchased a small condo unit in Virginia in 2008 for about $225,000.00 USD. In 2014, we would be lucky if we could get $140,000.00 USD. Realtors tell us we will never get back anywhere near what we paid. A number of the units were foreclosed because owners were so deep under water. Fortunately, our primary home in a historic district faired much better and we made a reasonable profit on the sale. We were lucky. Others, not so.

    • Lynn says:

      Yes, that is unfortunately what the Boomers are facing. Their prime investment, their houses, are still not worth what many paid. I don’t know how long it will take to be able to sell and get any cash at all.

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