The Crazy Real Estate Market
April 29, 2014
Whether you are interested in buying a home or selling the one you already own, the real estate market can give you a headache. For several years the value of homes has been dropping, so if you want or need to sell a property you are probably in for a disappointing experience. Most people think this situation would be a great advantage for anyone wanting to purchase a home – after all, with the price of homes dropping it should be easy to get a great deal. This might be true for some people, but simultaneous to falling home prices, financial institutions are not handing out mortgages as easily as they once did.
In addition to these problems, the economy has become depressed so anyone wanting to purchase a home has a hard time saving enough for the amount most banks want for a down payment. While investors with some cash on hand are finding it easy to pick up homes at a very reasonable cost, they may not be able to resell them as easily as they had hoped.
While banks are holding title to more foreclosed homes than ever before, prospective home buyers are renting apartments and hoping the economy will take a turn for the better. This means that builders find more work putting up apartment complexes than building new homes, and the construction industry as a whole is depressed.
While there are many opinions about how to get the economy turned around, progress is slow and it does not show much promise of improving substantially anytime soon.
There are some areas where the real estate market does show some improvement, such as Rosedale real estate Toronto, mostly in areas where the the economy is doing somewhat better. It can be assumed that eventually the price of homes will begin to show improvement, the economy will recover and many people will be in the position to finally purchase the home of their dreams.