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By: Adrian McCain

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Monday, 18-Jun-2012 07:30 Email | Share | | Bookmark
Reasons Why The US Property Economic situation Has Improved

The United State's property market is beginning to see some improvement. But it is happening at a rather slow pace. The reason behind this progressive change is due primarily to smaller fixed mortgage loan interest rates in 2012, new and Current home transactions, and the reduction in rental vacancies.
Lack of unit rentals
Due to the economy and problems with home foreclosures, many people in the U.S. have migrated to rental properties instead of purchasing a home. With all of these changes, apartments and other rental vacancies have become scarce. As a result, the cost of rent is much higher today than paying a month-to-month mortgage. For families that can take out a mortgage, purchasing a house now means smaller cost of living expenses.

New and Pre-existing home transactions beginning to skyrocket
Another reason is because house transactions are increasing. Last years 1st quarter saw a 5.2 percent increase in Pre-existing home sales, while new homes went up by over 16.7 percent. If you happen to be in the market for a house, then this news will benefit you.
The bad economy and shaky unemployment market cause previous revenues to decrease ad many younger buyers decided to wait it out. However, because of the steady market recovery, a lot of young buyers are finding more confidence in the marketplace.

Interest rates on fixed home loans are Lower
Fixed home loan rates are smaller than ever which is also aiding the recovery. The interest rates fell below 4% during the first quarter of 2012. For new families this makes buying a new home a better option. Based on information from Freddie Mac's study, affordability and a sincere interest in buying a new house are also higher for many. These new interest rates mean that for many consumers mortgage loan payments will be significantly smaller. It truly is advised you look at real estate marietta, an excellent resource if you happen to need more info.
Major obstacles in the application process
Although all of the new signals point to a recovery in the United States real estate economy, there are some speed bumps along this road. One of the major obstacles that new buyers face is in getting their mortages approved. Although there is a lot more opportunity in the economy, a lot of people still face significant rates of rejections. These rejections hurt the entire market. For whites, Hispanics, and blacks, denial rates have risen. Therefore, the property owners who would sell their existing homes to buy a new home are usually stuck because there are not enough eligible buyers. What doesn't make the situation any better is the fact that a lot of houses aren't worth the home loans taken out on them anymore. The newly recovering market may also become largely affected by foreclosures.


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