Construction Real Estate

Real Estate and Construction – big problem for the economic recovery

Week, the latest news on residential and commercial real estate is bad. From the perspective of residential
• Sales of new homes fell to an adjusted annual rate of 300,000, an album of all time.
• The builder confidence index fell in June
• Sales of existing homes fell in May
• 7.3 million mortgages are in default.
• 11.2 million homeowners now have negative equity in their homes.
These facts, sitting together with a supply of 3.89 million existing homes for sale and a large inventory of property seized shadow on bank balance sheets and not yet on the market and convincing evidence that house prices Outlook is dark and is determined in 2011 remain and perhaps 2012th It will also be a heavy burden on the economy.
Commercially, the AIA Architecture Billings Index fell in May, is an important indicator for the construction of commercial and investment banks. Then there is the range of empty commercial property on the market and the rising prices foreclosure, mortgage company focused on the balance sheets of banks, “that a large number of real estate mortgage business on its books, and more exposure to this risk, the banks, the community has that a large number of small business loans.
This overview of all aspects of real estate and construction is a major obstacle to economic recovery, and this barrier will be slow to come because of the persistently high unemployment. expired before the $ 8,000 tax credit, home sales have been good. The claim has now expired and the bottom fell out of the real estate market.