Categorized | Commercial

Recovery of the real estate industry in the metropolitan areas is slow

Recovery of the real estate industry in the metropolitan areas is slow
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Real estate in the metropolitan areas is still yet to come to terms with the global economic crisis as it continues to be affected by the menace which hit economies all over the world. For almost three years in concession, monthly reports on the real estate market show a decline in the purchase of homes in the metropolitan areas.

Though the situation has improved in recent months, experts say full recovery will take a few more years, especially in these metropolitan areas. Some other areas such as the plush areas are however picking up due to the boom in the technology sector. This is because the metropolises are mainly occupied by ordinary workers, most of which have lost their jobs in the wake of the crisis. Interests rates have gone up, sending prices of homes to rocket heights.

Many home sellers and real estate agents say that, whiles business is picking up in the country side, the metropolises are yet to wake up from the hit from the crisis. Reports show that, the average increase in housing sales has been around 25 percent for the early part of this year, compared to almost 35 percent in the years preceding the crisis. Figures for the early 2010 are however lower than this year’s. This clearly shows a recovery which is rather too slow.

Real estate industry stakeholders are also on the lookout for the number of houses being made available for sale, as this is a major price determinant and also an indicator of the number that will be sold. For the first time in 2008, about 80 percent of loans for first time home buyers from the government were overdue and most of these loans went to metropolitan dwellers.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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