Market Recovery Unlikely for 2011

January 12, 2011 by  
Filed under Market Recovery Unlikely for 2011

Real Estate Market Recovery very unlikely for 2011

By Joshua C Anderson, Lexington Realty Correspondent

Thursday January 06 2011

Los Angeles- Government stimulus programs and federal tax credits would have seemed to be great news for the real estate market, however the market has showed slow signs on recovery. While the foreclosure and unemployment rates show no signs of stabilizing, 2011 is almost exactly where it was a year ago with the exception of a few changes.

According to expert analyst the real estate market has yet to bottom out and while prices remain low there simply are not enough qualified buyers to make up the difference. While foreclosures are still very common home values will continue to plummet, further weakening the economy. The only entities benefiting from this situation are real estate investors who are buying properties and holding on them for the long term. One of the major contributors to the crisis is delinquent homeowners who won’t budge. The government has stepped in to offer its help via the HAFA program. It’s essentially a short sale that offers sellers up to $3,500 in relocation assistance if they qualify. The majority of short sellers are in fact insolvent and the relocation assistance would be a great benefit for them. On the other hand there investors who own rental properties and they will not likely benefit from HAFA. The problem however is not easily solved; getting the delinquent homeowners to agree to the short sale requires a lot of negotiating. Like most people in the United States home ownership is the American dream and like anything else there is a deep emotional attachment.

California based firm Housing Assist of America is one of the leading short sale companies in the country and have done hundreds of short sales with nearly every lender. A spokesman from the company stated that, “2011 is going to be one our busiest years yet, banks are stepping up their efforts to get these short sales approved with efficiency and satisfactory results”. The end result of these short sales is a positive direction in the real estate market.

Housing Assist Coldwellbanker