It is known that the real estate sector of the United States of America has been badly affected thanks to the ongoing global downturn. But, perhaps, none has considered the situation so horrific. If you want to know, I can present myself as a person having a great confidence on the American prowess. But now I am just panic-stricken. Well, you may be wondering but I’m sure that the reality will also scare you a whole heap.
It has been learnt from the reports of pertinent agencies that the struggling real estate market is threatening to protract the downturn and bring about more difficulty for consumers. According to the esteemed appraisal of the National Association of Realtors (NAR), the existing home sales, in this week only, had fallen 10.6 percent since the last month of November. The same figure was also advocated by the Associated Press report but in a more dreadful manner. In the words of the Associated Press, this was the slowest rate of sales in almost 18 years. The figure also denoted that the new home prices were falling by the largest amount since the spring.
The situation is alarming without a doubt. What should be the immediate steps therefore? Well, in line with the latest information, NAR is gearing up and planning for a federal housing incentive plan to make the revival the real estate market a stunning reality. What can be the essential parts of the well-thought-of plan? There can be the presence of an extension of the first-time buyer tax credit and permanent higher loan limits for high-cost markets.
Will this plan be able to make the revival of the declining real estate market a reality? It is not known but the days of mere speculation have gone and there is the need of concrete measures only.
Never forget that there is no other way. Do you know the consequence if no solution is found out rapidly? The continuous fall of home prices will have a disastrous effect on the broader society and the consumer spending along with bank balance sheets will be further undermined.
None of us want that day. Is there any?
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