Real estate market recovery at risk
They say that the real estate market is improving slightly: the house sales are increasing, the prices are attractive and the foreclosures are rising. But everyone is expecting the beginning of the month when the tax buyer program finishes. They predict that the market will collapse. The experts say that this is a threat to the economy.
At the same time the authorities offer some measures to avoid any decline. The banks promised to help some really troubled customers who are likely to lose their property. They also said that they are going to forgive some percents of debts to some clients. The authorities also expect that the quantity of those who want to qualify for the loan and who want to purchase a house will increase. This is a huge step from the authorities to give hand to the people whose house prices below what they own to banks. Due to the measures taken earlier the market has recovered considerably, but the state support can’t be forever. And they foresee the next crisis.
The crisis has a serious impact on the building branch which had to slow down the pace and it find hard to compete with the flow of foreclosure houses. Thus the branch can’t contribute a lot to the national economy. So the main aim of the government is to reduce foreclosures and stop people from selling a property. But forgiving some borrowers can’t work as it will make some people to give foreclosures on purpose.
Still many experts say that the prices are likely to fall as the administration measures have some risks and there will be many foreclosures on the market.
As for new houses some figures say the sales of new houses have gone up in some states like Maine, Massachusetts, while in some southern states the sales have fallen down.
