photo credit: AlexJohnson

Foreclosed homes will still be on the US market no matter who wins the race for the White House, according to one commentator. In an article printed in USA Today, Jeannine Aversa of the Associated Press examines the reasoning behind promises to help homeowners from Democrat Barack Obama and Republican John McCain.

According to Ms Aversa, both candidates envision the Federal Housing Administration providing new, cheaper mortgages. But more empty houses are likely to arrive on the market in future, driving down prices again.

The US foreclosure crisis has seen house prices fall to bargain-basement levels, with property investors able to pick up properties directly from banks with sizeable discounts.

The odds of the next president being able to quickly repair the housing market are low, according to some experts.

Quoted by the AP/USA Today piece, Cal Jillson, political science professor at Southern Methodist University, said only optimism for the future prompted by a new president will lead to “the slow rebuilding of confidence which will help to increase home values”.

Last month Boston Real Estate Now reported mortgage firm Countrywide Home Loans had 297 properties for sale in Massachusetts, with an average asking price of $174,628 (£88,887), which is below the state average.

Gulf super-developer Emaar Properties has announced a selection of new investment homes will go on sale this Saturday. The firm said units at its Burj Dubai project would on the market from the weekend following an “overwhelming” initial property investor response.

All of the new homes for sale feature uninterrupted views of Burj Dubai, the world’s tallest building. Units on offer include studios, one, two or three-bedroomed apartments, with online registration already under way.

Emaar sales director Salif Al Mansoori said:

“Downtown Burj Dubai has established itself as one of the most sought-after residential and commercial developments in Dubai.

“Apart from the amenities such as Souk Al Bahar, the soon-to-open Dubai Mall and several hotels, the mega flagship project features some of Dubai’s most architecturally exceptional buildings, including Burj Dubai.”

Emaar has recently upped its profile as it mounts an ambitious bid to become one of the world’s most valuable firms by 2010. It is behind the $26.6 billion (£13.3 billion) King Abdullah Economic City project in Saudi Arabia and also has interests in the UK and US.

UK interest rates have been held steady at five per cent by the Bank of England in what appears to be a safety-first approach. The Bank’s monetary police committee decided not to change rates amid fears a cut could mean it would lose control of inflation and a rise might help spark a recession.

Its decision comes after a poll of businesses revealed many now fear a serious downturn is a possibility. In recent weeks some of the UK’s biggest property developers have laid off thousands of workers as the country’s property slowdown continues.

Many property investors and other business professionals will be hoping the bank is preparing to cut rates in future if further indications of a looming recession emerge. Quoted by the BBC, Ray Boulger, of mortgage adviser John Charcol, said:

“With the economic news from nearly all sectors of the economy getting worse by the day, a rate cut is badly needed to help restore some confidence to consumers and reduce the financial pressure on both them and industry.”

Some were more insistent. A statement from Badger Holdings, parent company to Townends & Regents Estate Agents, said it was “incensed” the bank had not cut the rate.