House Sales – Where?????
Written on 29 March 2008 by Avatar
House sales remain low if not stagnant due to problems in all avenues of the business sector. Inflation brought about by excessive expenditure into the two wars the US is part of, the ailing economy that has already dug deep into their reserves, and many more issues such as with insurance and others continue to plague the economy holding it down. The amount of new homes that have been constructed is plentiful but these same houses are not going anywhere, and they amount to more than a year’s supply. These homes have to be liquidated or turned back into cash for them to of any good to anyone.
More Jobless – Less Houses
Written on 21 March 2008 by Avatar
Market analysts are seeing dip in house sales due to the rising number of people who are loosing their jobs. Industries are being forced to lay-off personnel to maintain their operations and stay through the rut in the economy. Most have the word of their employees of re-employment when things get better. The forecasts are still quite murky yet people are hanging on. Real estate will be changed forever by these events and people wish they would learn form their mistakes. Having a house to live in is just as good as having enough money to pay for their homes so they can keep living in them. The practice of getting people houses without proper financial planning sends them to the streets if economy fluctuates and they are left to fend for themselves with federal and state aid not sufficient enough for them to survive.
Bailout – Not in a Million Years!
Written on 17 March 2008 by Avatar
Bailout is another example of the Federal Government trying to answer for a mistake somebody else did so everybody just shuts up. Taxpayer dollars are the source of the funds and people are mad about the proposals. Critics say it initiates a practice that may help create a security blanket over the market that crumbles as fast as it was put up. It also encourages others to follow suit after a few years for the government will not allow such an event to happen again. Why should the government have to pay for the mess they have created all by themselves? Good point, for tougher regulation and accountability might be the key in preventing these events from recurring in the future.
New Home Sales at Lowest Levels
Written on 9 March 2008 by Avatar
New home sales are at their lowest points in 13 years and the economic slowdown has further affected the usually booming new house market. Mortgage lenders are expected to come up with more than 20 billion dollars in funds to cover losses. The effects would be long lasting as analysts expect the shake down market not to recover till 2009. Prices continued to fall from January of last year by as much as 11%. The problems in the housing market just keeps on getting worse which may have prompted the move by the American President to publicly say and admit the financial market needs a complete shakedown and overhaul to prevent this from ever happening again. Lenders are very much stricter with respect to home loans as well as banks and other financial institutions that were hit hard by the problems in the housing market.
House Prices hit Rock Bottom
Written on 5 March 2008 by Avatar
Many are asking why the hell this happened in the first place, the housing market has suffered most from the sub-prime lending money problems. Existing house sales are up a notch but still not as good as it used to perform. People inflate their house prices when selling due to expected haggling during price negotiations. The new housing market is still in a slump and certain areas have almost no house sales due to insurance pullouts as they reel in their lines to cut back on losses. More is expected of the housing market, just hope it’s good rather than bad. Two insurance carriers have already pulled out of Katrina hit areas and even in Tornado alley. What’s next, time will tell. The next posts will bring the latest news and information from the house market from the experts themselves.
Global Effects of the Sub-Prime Lending Market Problems in the US
Written on 1 March 2008 by Avatar
HSBC, one of the world’s largest banks has announced that it has suffered a total loss of more $17 Billion making it one of the worst hit financial institutions by the financial woes that the US is currently facing. The company says that the loss is high but gains in the Asian market have helped a lot in easing the pain. The banks profits rose by 20% from last year allowing it to survive the extreme pressure placed on them by the sub-prime lending woes that have hit the US financial market. Their problems began whe they opted to buy out one of America’s leading lending firms a short time ago leaving them ripe for the taking and with the said huge losses in therms of their global financial markets. Mainland China is one of the biggest open markets and Asia are proving to be their apples and are hoping to move more investments out of the US into other promising areas. They are maintaining some of their assets in the US but mostly due to allow them to maintain a steady share of the market in the said country.
Planning to re-model then sell, think again
Written on 9 February 2008 by Avatar
The luxuries of the past are not getting the attention they used to in terms of added value for your house. This has been seen as a trend brokers and sellers alike are noticing advising those who plan to do so to hold on a bit, well till the slump in the market has passed(whenever that may be). Granite countertops, built-in furniture, lavish interiors and other furnishings which gave houses of past added value in terms of the re-sell value of homes. House prices have indeed dropped but activity remains slow due to uncertainty which leaves people waiting for house prices to drop lower or for their money to get more teeth in terms of purchasing power.
Proposed Tax Cuts to Ease National Real Estates woes
Written on 5 January 2008 by Avatar
In an unprecedented move by the White House, New York was compared to New Orleans as one of the cities who would benefit the tax cuts proposed by President Bush to alleviate problems in the real estates business. The said proposal calls for the reduction of taxation as part of the federal government’s move to help recovery during disaster situations and is seen as the boost the industry needs to alleviate uncertainties caused by past mortgage interest wild up’s and down swings. Industry analysts are still awaiting concrete proof that such a move is underway and that it would help boost buyer confidence in the said business area.
