Categorized | Residential

Housing Market Has Yet to Reach Bottom Claims Regulator

Please Share!

Economists and housing market experts have claimed for the last month or two that the residential real estate market has hit its bottom, and is starting to stabilize. According to one of the deputy comptrollers at the Office of the Comptroller of the Currency, many regional markets have not actually bottomed out, as many believe.

While the growth in some regional markets has offset the declines in others, the comptroller believes that one cannot say that the national housing market has hit its bottom until that is the case for all regional sectors. One of the biggest issues being faced by regional markets is that there is a glut of foreclosures that are being handled at a snail pace.

In addition to the slow handling of foreclosures, overall residential real estate growth has been stunted by the incredibly stringent lending requirements for mortgage loans. While mortgage loans are at their lowest level in history, many potential homeowners across the country cannot take advantage due to the tough lending standards that continue to exist.

There is also fear that the poor investing decisions by the banks may take its toll on the housing recovery in the United States. JPMorgan Chase recently experienced a two billion dollar loss due to faulty and criminally poor investments.

While the strong performing housing markets essentially negate those regions that are performing poorly, this regulator believes that it would not be safe to say that the market has hit its bottom until it is clear that prices in each region have stabilized.

Please Share!

About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

Leave a Reply

Twitter Chat