The Housing Market Crisis
Fact is, the global economic crisis and has reached every corner of the globe and
is affecting all areas and economic sectors, including, of course, real estate. However, as the causes are varied economic environment we are experiencing, there are several factors to consider that show a light at the end of the tunnel, however small it may be.
Consider first the main causes of this housing crisis. At first we note as the main culprit mortgage meltdown in the United States. Calls subprime mortgages aimed at customers with poor credit, so the risk of default is much higher than any other credit. This made accessible speculative buying and selling markets that normally could not even buy a home, much less be spending money they did not have in real estate.
Besides that the speculation was accompanied by a large leverage, that is, under mortgages, when sold, were canceled to return to buy another home with a new mortgage, but both operations financed by a mortgage bridge. Put in simpler words, buyers waiting imaginary money invested real profit. This frenzy of investment led to an unprecedented increase in demand, and therefore a rise in prices overvalued, and therefore debt.
Which, in turn, resulted in the uncontrolled growth of supply, causing an increase in construction projects, condos, houses, houses, etc. saturating the market with properties priced over inflated and unrealistic and demand exceeding that previously exceeded. To these causes could add even more, such as globalization that affects not only the housing market, but virtually all markets, wiping out small and medium businesses that are gobbled up by large transnational corporations. And it is these same big corporations who have saturated the market for goods produced in series and in such quantities that have exceeded consumer demand, although they insist (and to some extent have done successfully) become a society consumerist and pragmatic, which has only what you have and how much you have, buying regardless of whether it is necessary or not. I could go on with more causal, but I stray from the topic .... Now we analyze the factors that can help us cope with the current situation and make it through the tunnel.
We must not forget a very important point, which is that the real estate has always been and will remain a good investment, for the simple fact of being a commodity and that will not deteriorate over time (in the case of public lands But even those with construction if given proper maintenance and improvements), in addition to the need for housing continues to grow, and for the privileged who live in coastal areas, the number of beaches in the world is limited, which limits supply and increases demand. Regardless of the current situation, the housing market will recover always, a matter of time.
The problem we really should matter is how long this recovery will take and prepare to weather this period. Moreover, there will always be buyers and investors looking for the best opportunity, the best investment, best price. Which brings us to the most obvious and only solution in the short term, however trite it may seem simple: lower the prices of properties, and who will win the first lower long term, because prices will inevitably come down and get low. And those who began the descent will be those who have had to lose less and have the opportunity to reinvest their money, either in other markets that are at a lower point of the slope, or wait for prices to fall further the same market. As estate agents, it's time to convince their customers salespeople who really want to sell, the lower the prices of their properties considerably to attract investors who are waiting. And also, it's time to dip into the client portfolio investors who are hunting for a good opportunity, a good deal, the best price possible. Unfortunately, it is the right time for those just starting in the realtor career because competition is hard and few customers. But those who know how to use these two factors can not only weather the crisis, but even could benefit by it.
by: Jackgold46
Taking Appropriate Warehouse Services Have Wall Murals Inside Your House What Are Green House Accessories And How Do They Benefit The Plants Selling Your House Through Professional Property Banks In Uk Ways That A Glass Balustrade Can Change The Overall Look Of Your House Households Need To Have Kids Video Game Titles For Exercising Secret Behind The Success Of Work At House Low Income Housing Grants - A Relief To The Poor Tips To Drive Up Your House Valuation Perth Valuable Pointers About House Security Systems Reasons Why Your House May Need A Cheap And Fast Vpn Company Shubhkamna Monarch Upcoming Housing Project At Noida Extension Houses For Sale Greece: Grab The Opportunity To Find Dream House