Mortgage Crisis Hit the Sales & Value of Real Estate

Mortgage Crisis Hit the Sales & Value of Real Estate

In a conference of US Mayors, experts said that in last 16 years this is the worst housing downturn. They have estimated that during the next year this will lead to the decline of property value by $1.2 trillion and will cut down tax revenue by more than $6.6 billion.

It was said that the California would suffer the hardest, as decrease in property value here will be around $630.6 billion. They also said that the New York City might face the utmost slowdown in the economic output because of the mortgage crisis.

The real estate market in United States, especially the residential subdivision is very uncertain as the prices are pushed down due to the increasing percentage of the foreclosures among the sub prime borrowers. The highest default rate is from the sub prime section. This has led to the record number of unsold homes.

In a recently released report on home sales by National Association of Realtors, it is very clear that the things are getting worse everyday. The report reveals the data of existing home sales in the month of October and it is actually a shocking one that shows the...