Further government help for US real estate market?

December 3, 2008 by OPPE News

photo credit: cliff1066
America’s real estate market could get further government help after Treasury officials said they were looking at more aid for America’s economy.

Treasury secretary Henry Paulson addressed journalists in Washington, saying the US was still trying to “work through a severe financial crisis”.

The outgoing Bush administration has already injected hundreds of billions of dollars into struggling companies in an effort to prop up the economy.

Mr Paulson said his department would work with president elect Barack Obama to pass on suggestions and plans for further progress.

He said:

“We are actively engaged in developing additional programs to strengthen our financial system so that lending flows into our economy.

“When these programs are ready for implementation, we will discuss them with the Congress and the next administration.”

He said the ongoing housing slump was was at the “root of our economic and market difficulties” and pledged to work to increase the availability of mortgage finance.

But he warned the more the economy slows, the longer America’s house price dip is likely to continue.

While property owners have seen values plummet in some areas, a rash of foreclosed US homes continues to present investment opportunities to buyers with finance in place.