What excactly happened with the real estate market?
Posted on January 28th, 2010 in Renting & Real Estate | 3 Comments »
encourager4God asked:
I know real estate is not doing well and this is paritally the cause of the economy being unstable. My question is what exactly happened with the realestate market go cause the economy to become what it is now? Can you please explain this in laymens terms?
Hershey Pa Real Estate
I know real estate is not doing well and this is paritally the cause of the economy being unstable. My question is what exactly happened with the realestate market go cause the economy to become what it is now? Can you please explain this in laymens terms?
Hershey Pa Real Estate
3 Responses
San Diego Foreclosures
Banks increased interest rates, the enconomy is and was horrible, no one could afford to pay the extra interest. A lot of people lost their house, and so the banks got more strict on loans. If no one can buy a house, or afford it. It will be hard to sell them.
Chula Vista Ca Real Estate
There is a common thinking of security of investment in land and building among people .
The fluctuating share market diverted investors attention in bulk to this area .
This leads to a spurt in investment in landed
property .
There is a inflow of private investment for which land in bulk is required .This lead to increased demand and price for land .
Increase in investment lead to full employment .Full employment also leads to
high investment in land and building .
In brief ,this peculiar phenomenon is due to over all development in the economy .This will continue upto a certain level .
Laser Hair Removal New York
In simple terms, banks and investors got greedy and it was stupid. They created ways to let people with bad credit get 100% financing. Most countries require down payments of 40% or more!! So you have all these deadbeats that got 100% financing that had no savings and they started to lose their jobs, get divorces, buy more properties and bottomline, these people are starting to default on their loans. Even worse, people with good credit were also offered 100% financing and the same thing is happening to them. In America, we are taught to use credit like we are entitled to it. That’s horse crap. Borrowing money is borrowing money and banks and the governemnt need to control how they lend it. Did this help?