Over the past several months, I got addicted to a reality house buying show. It was aired on a garden and home channel. To me, the program is entertaining as well as informative. It showcased many spacious and opulent houses across America. It also spotlighted faraway residential subdivisions in many American cities. In the show I saw buyers of many bank-owned three or four-bedroom homes in great locations at the asking prices for not more than a couple of hundred thousand dollars. There was a couple of families acquiring vacation homes in Florida Keys and Arizona area at the tune of $1.2 million and $500,000 respectively.
From this television show, it seems to me there was no shortage of home buyers.
But this robust activity in the resale market is a stark contrast to the dismal real estate market many months ago. At that time over-priced houses lost its value drastically and so many people lost their homes to foreclosures. Furthermore, the current unemployment rates will certain not strengthen consumer confidence either. Last week, they rose to a historical high of 10.2% in the States and 8.6% in Canada.
Based on the hot housing market I saw on television and the extraordinary high unemployment rates, I am totally lost on the direction that our fragile economy is heading to. - Ayee
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