Recently, the Capital Region housing numbers for June were released, showing slow area growth. Closed sales were down 4 percent but pending sales were up 15 percent. The average sales price is up 3 percent and sellers are receiving 93.5 percent of the asking price.
What’s the reason for slow growth for the Capital Region? The Housing Market is putting a damper on recovery. Typically, the Housing market leads us out of recovery, especially with the record low interest rates. But the problem is that the banks aren’t lending. There is an overhang from all the potential litigation from investors who were sold securitized mortgage loans from banks such as CITI and Bank of America. These banks have had to take huge reserves for this possible litigation. These reserves use up much of the capital the banks could lend, thus money is tight in the Housing market.
Interested in more? You can watch this full segment at www.fox23news.com/content/mornings/default.aspx or visit our News page for other financial tips and advice.
What’s the reason for slow growth for the Capital Region? The Housing Market is putting a damper on recovery. Typically, the Housing market leads us out of recovery, especially with the record low interest rates. But the problem is that the banks aren’t lending. There is an overhang from all the potential litigation from investors who were sold securitized mortgage loans from banks such as CITI and Bank of America. These banks have had to take huge reserves for this possible litigation. These reserves use up much of the capital the banks could lend, thus money is tight in the Housing market.
Interested in more? You can watch this full segment at www.fox23news.com/content/mornings/default.aspx or visit our News page for other financial tips and advice.
