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Impact of credit crunch on housing associations |
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The impact of the credit crunch on the housing association is being bringing devastation and catastrophic like effects to the sector. People that had the money to spend on luxury type homes are being forced into foreclosure due to the high unemployment rates as well as the high interest rates that have gripped the nation. With all this said it is undeniable that the housing market is suffering dramatically. No one can afford to pay the mortgages on homes with the interest rates as high as they are now. People are doubling up at this point in time, with things in such turmoil. They are returning to live with parents, or living with friends just in order to make ends meet. This has resulted in a different trend in regards to what is needed in the housing market. A lot of the homes that have been lost due to foreclosures are being used as rental properties in an effort for the banks to regain some of the losses that they have incurred. Also the increased need for apartment type dwellings has also had a huge impact on the housing association. The increased difficulty in obtaining the funds to start new
projects is a reflection of the impact the credit crunch is having on the housing association. With more and more condominiums and homes remaining vacant due to lack of sales, the builders themselves are having their own problems in acquiring the money necessary for new start up projects. The values of the properties that are vacant are decreasing because of the higher costs and the difficulty in acquiring start up capital for new projects. his is a vicious circle we are in right now. As long as the contractors that build the new developments are able to get the funds that they require for their projects, things will continue to remain at the point they are right now, with more apartments being the focus of the consumer needs. Until such a time that there are more jobs to be had a lot of the American people will remain in the apartment style of living as oppose to being a home owner. They will refrain from them as they fear for the worst happening to them again in regards to losing their homes. With the President of the United States, Barrack Obama, signing the $787 billion dollar plans to stimulate the economy. We can only hope that things will show a turn for the better in the very near future, which will in fact help thousand in the nation as well as thousands of others that are affected globally. Credit Crunch
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