America hit the bottom

People in the United States have become more modest. If, before the high rates of growth in real estate was something quite normal, then in the American financial experts now enjoy, if cyclical values fell by a moderate rate. „The worst is already behind us“, according to government circles in Washington, but added that the crisis has not yet been finally overcome.

Different states, different crisis

Media situation in the U.S. real estate market continues to be one of the most important topics, because, ultimately, almost every American directly or indirectly affected by it. Highly respected currently broadcasts in which they give advice – eg. whether the time is right for the purchase of real property. The fact is that in July the number of sales of new houses rose by almost ten percent compared to last month. Although not yet reached the level of sales in July 2008, looks at everything that America has already hit the bottom of the crisis in real estate. More was in June grew by over 9 percent, and in May – from 5 percent. Such developments are monitored and used in homes and houses. In some regions of the U.S. real estate prices began to rise.

The problem is that the market is developing differently in different parts of the country, said Peter Teytian the Institute for Market Economics in Washington: „The crisis is developing in different ways. There are parts of the country which are affected more strongly than others from the collapse of industry Real Estate. remains a serious situation in areas that have historically had an abnormally high population growth. These are mostly in states west of the country, as well as Florida and California. there until the situation normalizes, will pass more long time.

Much better things look in the capital Washington, who is not severely affected by the financial crisis. The market here will recover faster. „Collapse of the real estate market in the United States was responsible for the biggest recession with the worst consequences of 70 years. There followed a collapse of the economy and parts of the banking system. Unemployment has increased. Many workers and pensioners lost their savings for retirement provision. Hundreds of thousands of Americans suddenly were not able to pay their loans.

Still far from reviving

This situation has not changed today. The country has a wave of corporate bankruptcies and private, as there was even after the Second World War. In the beginning was the crisis in real estate now, however, experts believe that excessive indebtedness, unemployment and people are the main reason the economy may not recover.
According to Peter Teytian Government Obama tries to fight crisis with the right tools. Rescue packages totaling billions have been able to relieve those affected by the crisis. But this should not be everything, argues Peter Teytian: „Now, further efforts are needed to stimulate economic growth and create more jobs.“

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Deutsche Welle