photo credit: Just a guy who likes to take pictures
American real estate developers are said to be looking for a quick-fix style cash injection from incoming president Barack Obama, as many remained optimistic on his impact.
Construction has been one of the areas hit hardest by the slowdown, with thousands of American jobs lost in the industry.
But with the official arrival of Democrat Obama in today’s inauguration, many hope the real estate market will be in for a boost as his administration looks for ways to prop up the economy.
A USA Today Gallup poll demonstrated the optimistic air, with about 70 per cent of respondents thinking America will be better off when Obama’s first term ends in four years.
Writing for the Guardian, economics editor Larry Elliott looked at the challenges faced by the new president, from real estate strife to rising unemployment and foreclosure rates.
He said:
“If Obama can get the economy right, he will have both the money and the moral authority to fix all the other problems.”
Whatever happens, the battle to slow the foreclosure march is set to see more cash injections.
The Senate has already approved another $350 billion slice of the Troubled Asset Relief Program (TARP), on the condition between $50 billion and $100 billion is splashed on anti-foreclosure programmes.
With the number of homes affected by foreclosure going over three million during the last 12 months, it appears the rate can only go down as opposed to up with the arrival of more direct funding.
Realtytrac, a real estate consultancy, published the astonishing foreclosure figures last week as part of a regular study into the issue.
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