A new American real estate crisis hits the world soon ... and races in America for sale before the flood.
Just as economists in America expected, the collapse of the real estate market in the first half of 2019, except that what is happening on the ground, where the amount of real estate offered for sale as a result of panic before the price collapse led to a worsening of the situation in which the market movement far exceeded the expectations of observers for the worse.
Everyone remembered the beginning of the real estate crisis in the United States at the end of 2007 and the beginning of 2008, which extended to the global economy, as it was the largest engine for it in the world.
Causes of the past crisis
What happened in the past in a nutshell is that banks deliberately gave high-risk loans at high costs borne by citizens wishing to buy real estate, which was not commensurate with their salaries, which helped the banks to achieve very large profits in a short time.
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Of course, competition began from banks to offer very attractive offers with greater facilities that did not suit the income of citizens, as banks added the interest of exaggerated loans to house prices, and therefore on citizens, and the only guarantor for the bank at the time was the property itself, which the bank would recover in case of inability to Repayment, which is what actually happened.
But the trap in which the banks fell at the time was that real estate prices were exaggerated in order to buy, and therefore in the event that they were recovered and resold, they lost much of their value, as the market collapsed due to the inability of the masses to pay, and thus everyone fell into the trap, so that part collapsed with him. A large part of the US economy and followed by an underestimated global economy.
As the movement of banks and the global financial system is so intricately interconnected, US banks have sunk in debt to the extent that some have declared bankruptcy.
The United States and Europe were the most affected before the crisis reached the Gulf markets in 2009, which prompted banks to radically change the system of loans and home purchases, which pushed the home-buying movement to sleep for 6 lean years in the United States.
Current Situation
The real estate crisis in the United States of America since the beginning of 2013 began to ease, and there has been a natural movement in buying and selling.
But house prices have started to rise exaggeratedly again, and some homes have reached twice their price since the beginning of 2016 when the supply of homes decreased due to the demand for buying.
The real crisis that threatens a major recession in the movement of buying and selling real estate now is that real estate prices in the United States currently exceeded real estate prices in 2007, which may take the market and banks to a freeze for the coming years.
Jessica Miller, in a company that sells real estate in Maryland, Virginia and Washington DC, says, "There is a very significant decline in real estate purchases by more than 90%, as all the news is about an expected big wave of decline." Prices, as the prices now have reached a big stage compared to three previous years.
Miller added, to Al-Ain News, that "there is a state of panic among citizens to sell their homes, as the prices are now very good, but the high turnout will push prices to collapse suddenly."
She explained that the real estate market in the United States is now on a date with a decline and a course adjustment, as real estate prices have reached an illogical stage, and therefore what is happening is expected, but citizens rushed to sell to achieve quick profits, which will push the market to a sharp decline.
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