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By: Chris Albright

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Monday, 18-Jun-2012 08:23 Email | Share | | Bookmark
A few key considerations that helped the U.S. property market to

According to Market Watch, the real estate market in the North American is starting to improve. But it is happening at a rather slow pace. The changes are occurring due to at least three major Variables and they include the reduction in rental potential, Existing and new homes revenues on the rise, and Lower fixed mortgage loan interest rates in 2012.

Shortage of apartment rentals

Due to the economy and issues with house foreclosures, many families in the North American have migrated to rental properties instead of purchasing a house. Because of this, apartments and other rentals have almost vanished. This has caused these rental prices to slowly rise past that of a typical home loan payment. For families that can take out a mortgage loan, buying a house now means smaller cost of living expenses.

New and Current home sales beginning to skyrocket

The increase in home sales are also a major cause. The U.S. saw new home revenues growth by 16.7%, and Old homes by 5.2% based on sales from last years first quarter. If you plan on buying a home soon, then this is really convenient news. The bad economy and shaky unemployment market cause previous sales to decrease ad many younger buyers decided to wait it out. However, because of the consistent market restoration, a lot of younger buyers are finding more confidence in the marketplace.

Interest rates on fixed home loans are Lower

Smaller fixed mortgage rates is another major concern in this considerable recovery. The interest rates fell below 4% during the 1st quarter of 2012. This is what is making the option of purchasing a new home more attractive. Freddie Mac also carried out a survey during this year that documented that interest in buying a nome was rising throughout the nation. Likewise, based on this new interest rate, the monthly note on a new or Pre-existing house is down by 6.6% (compared to the 1st quarter in 2011). Don't hesitate and head over to reston homes for sale, there you can read so much more about the subject.

Home ownership Challenges

Although all the numbers seem to indicate a easy restoration, there are still plenty of issues to be dealt with. One of the major hurdles that new buyers face is in getting their mortages qualified. There still exists a high percentage of denials even though there appears to be more opportunity. These application denials are adversely impacting Everyone. For example, denial rates have risen for Hispanics, whites and blacks. For those looking to sell their homes in this financial situation, these denials mean fewer eligible buyers. Another ripple effect that comes from past and present economic problems is some property owners owe more on their homes than its present value. The newly recovering economic situation may also become largely impacted by foreclosures.


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