Housing market in deep trouble – Builders have a different view

“Adios Mr. Recession!” The US economy has already said that, but the economic depression has let some deep foot prints while moving out of the economy. The worst hit is the housing market, which has been struggling till now, because of the huge number of foreclosures caused by mortgage crisis.

The sales of the existing homes went down in the month of July, reaching rock bottom and being recorded as the lowest in history. There was a quick twist in the story, when one of the luxury homebuilders named Toll Brothers actually reported a quarterly profit. The reason for this is simple. The tax credits helped them to see their shares going up by 2%. However, the home sales were down from last year 2009 and the orders for new homes also declined sharply by 16%. There is a class of investors who opine that the housing market has entered the boom era once again. The data for some builders gaining is not really a great one, because the broader scenario is gloomy.

There is something about the strange reaction because some of the builders are definitely making profits, but the concern that comes in is that the tax credits, which boosted up the housing market, have ended and the economists are now thinking about the alternatives that can add some juice to the skinny market of Real Estates in the near future.

Some economists believe that the sudden wave of recovery in the housing market was a result of the government aid and that without any such aid, the housing market will continue to stay in the poor state. Some believe that the Treasury and Federal Reserve need to do something to keep the mortgage rates at low levels and they need to take steps that can actually help in making financing easier. However, some economists do have a different opinion and they think that the mortgage rates, which are already at very low levels, are not making any differences. They know that what can make a difference is a reduction in the inventories of foreclosed properties leading to an increase in the housing prices.

Good news for would-be homeowners is that the banks and lenders have huge inventories of foreclosed properties and that they are willing to get rid of these properties at any cost. They are offering heavy discounts on preoccupied houses to attract buyer.

The latest of all the foreclosure listings and the most recent news on foreclosure can be found at ForeclosureDataBank.com. Therefore, if a preoccupied home is what you are looking for, this site is the best option for you.