Saturday, March 29, 2014

Real Estate in U.S. growing 10% annually and gets dynamism than a decade

Although there is skepticism about the strength of relaunching , the IMF notes that feed signals optimism. 2013 marked the first promising signs in the U.S. housing market in several years, which has analysts hopeful that a more sustained recovery in that country would finally consolidating sector.

According to the quarterly S & P / Case- Shiller , which considers home sales across the country - to the second quarter of this year prices would already retaking the levels exhibited a decade. So , slowly the lows until early 2012 just forget .

Today, the average values ​​of real estate sales increased 10% from a year ago, but still lie 23 % below the peak reached these assets at the height of his pomp , in the second quarter of 2006.

Everything was subprime

In 2006 , fears of a housing bubble in the United States could be about to burst crashed against the reality that financial markets appeared healthy, with a devastating dynamism.

However, since 2007 , several analyst reports circulated about a category of investments that end up becoming part of the vocabulary of average world : subprime mortgages . Subprime indicating that it was financing packages that combined assets of category "A" with other riskier , but remaining well disguised by the former. These corresponded risky roles , majority interests , mortgage notes to people who borrowed taking advantage of low interest rates in the first half of that decade.

The problem is that many of these new borrowers did not have as large a capacity payment, and given that house prices rose , it was also making the amount of debts. Meanwhile, the Federal Reserve began to raise interest rates to control inflation driven by higher consumption.

When it became apparent that there were threats beyond the so-called subprime assets, the fear spread , the value of homes plummeted and borrowers found that their mortgages were worth more than the homes they were paying .

Banks and insurance papers were full of subprime , and attempting to sell out , the market sank further . Investment bank Lehman Brothers could not escape the financial tsunami and announced its bankruptcy on September 15, 2008 , marking the sign of a worse collapse than developed countries still have not recovered.


Today analysts look with greater confidence the rise in real estate assets. " The housing market recovery has been stronger than expected and giving a strong impetus to private domestic demand and economic growth ," said Jarkko Turunen , chief economist of the Western Hemisphere Department of the International Monetary Fund ( IMF).

"With the rise in property prices and the positive effects of public programs of housing finance , now there are fewer homeowners with negative mortgage assets (mortgages ' underwater ' or whose outstanding amount is greater than the value property ) or who are behind in payments, and decreased the number of foreclosures, " he explained.

There are fears , of course , as a rate hike or stop recovery optimism that both inflate a new bubble in the sector.

However, the data show an encouraging picture , with less tendency to foreclosure.

" The steady increase in housing prices is pushing all boats in this real estate market and should include the inventory of homes for sale in the coming months ," said RealtyTrac Vice President Daren Blomquist . RealtyTrac data shows that while 10.7 million owners are very stuck in their mortgages , 8.3 million could be in a position to sell favorably to 2015.

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