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Housing Market Recovery Suggestions by Economists

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At a time when home sale numbers are dismal and foreclosures rule the day, the rental property market is faring much better than the real estate market in general. And herein, economists believe, lays the key to a recovery for the housing market. With rents going on an upswing while housing prices crash, residents in several markets may soon find that self-owned property presents a better deal than rentals.

Economists have suggested a three-pronged government strategy for stabilizing the market and for encouraging investors into showing interest in the housing market. They point out that attractive financing schemes made available to local investors would help revitalize a number of local economies by clearing up spare properties and righting the demand supply equilibrium upset by new foreclosures declared each day.

They also suggest moving quickly on impending decisions on policies regarding lending and handling of mortgage cases so lenders can give out loans with a free hand. They also warn that a principal write-down initiative is important to cut down the risk of the current debt situation persistently lingering in the worst hit regions of the economy.

Whether you’re a landlord or a homeowner, continue reading here for more details on the economists’ suggestions for aiding a recovery in the market.

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