A US bailout of the country’s two biggest mortgage lenders could finally provide help for one city’s stalling real estate sector, one firm has said.
Houserebate.com said the government takeover of Fannie Mae and Freddie Mac would bolster property sales in San Diego, California.
The area has seen a spate of foreclosed homes on the market and property has slipped in value in some areas.
But interest rates are getting lower, thanks in part to Sunday’s double bailout, prompting predictions the market could respond accordingly.
Houserebate.com said:
“This increased housing demand will help mitigate further steep declines in housing prices.
“The lower interest rates will not help those already in foreclosure but may help homebuyers that may be able to refinance now with the lower interest rates.”
RehabDealsColorado.com, which specialises in Denver wholesale real estate listings, said US property investors could turn to different buying methods ahead of a possible downturn in foreclosure numbers.
It said:
“With increased competition, real estate investors are finding it more difficult to find great deals using traditional listing services.”
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