It’s the “Catch-22” syndrome. One of the big things to help the economy is to sell more homes. In order to sell more homes we need better credit. In order to loosen credit we need a better economy.
According to an report recently released by TD Economics U.S. credit appears “to be on the mend”. Several positive indicators lead to this prognosis. Willingness to lend by commercial banks is at a five year high. Easing credit standards coincided with a drop in delinquency rates to signal an improved credit quality. While Real Estate loans have continued to be problematic, unsecured loans have shown improvement.
That improved credit quality gives room for optimism. Credit card and student loans fall into this category. Their upswing in repayment is boosting the rest of the industry. While we don’t want to see over-extended credit like the recent past, positive credit moods stimulate the economy.
A stimulated economy means more jobs and more people able to buy homes. More homes sold means more positive economic movement and credit improves. We are not free and clear. Some lenders are still suffering from the 10% delinquency rate of recent times (up from about 2% the decade previous). But it is a start. And once the housing industry gets moving forward again, the rest of the economy will benefit too.
The impact for the Yuba-Sutter area? Like most other areas, we have our share of “distressed properties” (the term given to properties (homes mostly) that are in financial trouble). We had a good amount of construction prior to the crash, so we have that inventory to deal with. But, have you noticed that builders are building again? There are new homes going up in Yuba City and in Plumas Lake. Yuba City just opened a new community!
For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!
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