The collapse of the real estate market has been one of the major highlights of this current recession,Polo Ralph Lauren. Homeowners and investors have seen the value homes fall through the floor,oakley baratas. This has also been coupled with unprecedented high levels of foreclosures and weak consumer confidence,Effects Of Recession For Real Estate Industry In 2009,Ralph Lauren Hombres,Effects Of Recession For Real Estate Industry In 2009. Analysts trying to place a dollar figure on the amount of losses have all agreed the financial losses nationwide could be in excess of $600 billion and counting,gafas oakley valentino rossi. Although recognized as the genesis of the financial meltdown,gafas sol ray ban, subprime mortgagers are still bent on slapping on high adjustable interest rates on subprime borrowers who had purchased homes under the no down payment home purchase system,gafas carrera.
Expanding Crisis
After the second quarter of 2009,gafas carrera champion, we saw a new trend developing in the real estate market where the fangs of the recession started biting into the untouched territory of high end,bolsos chanel, second home and vacation home markets,ray ban baratas. These homes usually valued over a million dollars and were reserved for the rich were standing still without suitors,Lentes ray ban. Locations such as Florida,gafas ray ban wayfarer, California,gafas sol carrera, Michigan and Nevada where there is usually a waiting list with real estate agents to purchase high-end houses were all showing increased rates of foreclosures and late mortgage payments even among the rich,bolsos chanel. This has led to many in the real estate business to concede that by the time this recession is over no one will be spared,chanel España.
Lack Of Confidence
Prior to the collapse of the housing market in the US,chanel España, investment in subprime investments was hot commodity amongst traders,Ralph Lauren España. These subprime loans were being packaged and resold with A+ rating providing high returns for investors,Polo Ralph Lauren 2013. When interest rates began to rise and the pressure was brought to bear on the subprime home owners,ray ban 2140 wayfarer, the bottom of the bucket fell out,Ralph Lauren España, investment houses began operating as ponzy schemes by taking the investments of smaller investors to pay the larger ones,gafas carrera españa. This however was unsustainable and the entire system crashed,oakley gafas. As a result,gafas carrera españa, over 2,ray ban españa.5 trillion dollars was eventually lost in the confusion that followed,Lentes ray ban. Investors started selling blocks of bond at prices significantly less that market price as the bonds were downgraded from A+ to junk,ray ban españa.
To prevent a total collapse of the mortgage bond market,Gafas ray ban, the government had to provide financial support to the major players Fannie May and Freddie Mac,oakley españa.
Loss Of Jobs
The real estate was one on the major employers of skilled laborers,gafas sol carrera. These laborers ranged from carpenter,gafas sol ray ban, plumbers,Related articles:
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http://gafascarreraoutlet.webs.com/. The collapse of the real estate market literally put these individuals out of jobs as there was a cessation in new housing developments and current homeowners chose to suspend all home improvement until the financial condition improved,gafas carrera espejo.
New Opportunities
It is said that in everything there is opportunity,carrera gafas sol. Some individuals have managed to benefit tremendously out of the collapse of the real estate market,Polo Ralph Lauren. Some individuals preferred to invest in modest investments that were unaffected in the recession,chanel outlet. As a result,oakley españa, they were there to buy up many potentially valuable real estate properties at a small percentage of the original market value,gafas carrera imitacion. These individuals stand to make significant profit when the market resurges,chanel españa. Other investors such as those in the home rental sector were also able to acquire property at knock down prices,gafas carrera.