Our chapter's first meeting of the year rewarded attendees with a very informative professional presentation by Dennis Uyemura, Vice President, California Bank and Trust.
A packed house at the Pacific Club lead by our new President, Karen Davidson, MAI,CRE, listened as Mr. Uyemura presented a clear picture of the challenges facing our nation in an objective, unbiased program with historic data graphically supported with slides and handouts.
Turning to the real estate market, Uyemura
noted that home prices continue to trend downward and mortgage delinquencies and foreclosures continued above 12% through 2011 according to Mortgage Bankers Association
Another graph of the results of a state by state study by CoreLogic in the second quarter of 2011 revealed the disturbing percentage of homeowners with negative mortgage equity.
Nevada, Arizona, Florida, Michigan, Georgia and California all reported more than thirty percent of homeowners were underwater on their mortgages, Nevada and Arizona's numbers exceed 50%!
Little wonder that many borrowers have simply stopped paying on their mortgages.
then turned the focus of his
presentation to "Debt and Leverage" with a brief "History of Debt in the Economy".
of Labor Statistics data reporting Real Median Household Income in the U.S. (inflation adjusted) has been declining since 2007 with a slightly steeper decline in California since 2006 and is now below 1997-98 levels.
An international GDP comparison by Mr. Uyemura
pointed out that the U.S. is still the largest economy by a lot but the European Union
27 countries combined are larger than the U.S. China's GDP is growing but is only a third of that in the U.S. at the present time.
Residential investment has been the driver of every recovery except the current one according to Mr. Uyemura
concluded by offering "The Necessary Fixes"