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Fasten your seat belts for a bumpy ride in Real Estate market Business Articles | October 19, 2010
There are chances that the home sales will increase and the home prices will go skyrocketing in short run. This is due to the several leading lenders who have decided to put a hold on their foreclosur...

There are chances that the home sales will increase and the home prices will go skyrocketing in short run. This is due to the several leading lenders who have decided to put a hold on their foreclosure proceedings. These banks and lenders include Bank of America, JPMorgan Chase and Ally Financial. This hold will lift up the home prices temporarily. They will be removing their inventory from the markets, so the Real Estate market can get a boom. Experts say that this boom will be fragile and short lived, because foreclosure sales glut will be hitting the market and will be leading to bad results in the long run.

Economists think that the home prices will move up and become firm by the last quarter of the next year. They say that the move taken by these lenders will be a good one for the economy Mitch Wishnowsky Womens Jersey , but the effects will only be short lived. This is due to the foreclosed properties sold with delay, which in long term will create problems for recovery of prices. There are possibilities that distressed selling will be pushed out in 2011-12. The banks have announced moratoriums in the last two weeks, because the validity of lender's affidavits was questioned.

Foreclosure freeze was expanded to all the 50 states of US from 23 states by the Bank of America. Some of the states which were added to the foreclosure freeze list were California, Arizona and Nevada, which were badly hit by foreclosures. Experts believe that if other home lenders join Bank of America Jalen Hurd Womens Jersey , the market will get a high impact.

However, the economists believe that any short term hike in the sale of houses or increase in the property prices will be misleading. The readings will be false in the fourth quarter and the numbers will be highly skewed. Experts even think that lenders can opt for even shorter sales, (where the banks will agree to sale for less than the balance of the mortgages) which can have substantial impacts on market prices. More distressed selling can come out because the potential buyers will like to wait and watch for the foreclosed properties coming out in future. This will give the potential homebuyers to get preoccupied properties at even more reduced prices.

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