RealtyTrac on Wednesday reported that almost one out of three home sales in the U. S. was a foreclosure property as high price discounts increased demand for the troubled real estate market.
Foreclosure was responsible for whopping 31 percent sales of residential property in the first quarter of 2010. Irvine, California-based RealtyTrac said that the aggregate price tags of properties that sold during various stages of foreclosure were 27 percent lower than those that were not in the process.
On Tuesday The House of Representatives have decided to approve extra time to thousands of homebuyers trying to get a popular federal tax credit by the end of the month.
The House backed a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. They got a vote 409-5 on the issue. Under the current deadline buyers require to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.
It still needs the Senate’s approval before President Barack Obama can sign it into law.
Britain’s second-largest homebuilder by market value, Berkeley, has registered a year-on-year drop of 8.4 per cent in pre-tax profits at £110.3 million.
Annual revenues declined more than 12 per cent to settle at £615.3 million. The decline was the result of decline in the average selling price of property.
Still, the results were at the top end of City expectations, thanks to historically strong demand from overseas buyers. Berkeley said that the number of purchases by foreign home buyers jumped more than doubled during the last year.
Khazanah is all set to buy a controlling stake in Aman Resorts from DLF. Khazanah is the leading sovereign wealth fund of Malaysia and DLF is the largest real estate company of the country. The financial aspects of the deal have been reported by the sources.
The Malaysian Inc. will pay around $300-$350 million to the debt-laden DLF for this stake purchase.
However, whether Aman's New Delhi property is included in this deal or not, is not yet been disclosed.
Potential buyers stopped shopping as they were no longer qualified for government tax credits resulting in the fall of sales of home.
According to a survey by Thomson Reuters done by the economists, the expected sales of new homes will go down by 19% from one month earlier, to a rate of 410,000 which is adjusted seasonally.
Despite the Federal tax credit being offered to boost the sale of homes, resale of US condominiums and homes dropped by 2.2% to an annual rate of 5.66 million, in May, the number being seasonally adjusted. This was according to the data released by the National Association of realtors on Tuesday. The economists who were surveyed by MarketWatch, on the contrary felt that the tax credit will make the potential home buyers rush before its expiry in June, thus increasing the sales to above 6% taking the annual rate to 6.11 million units.
The discussion paper about the DTC (Direct Tax Code) is now being revised. It was issued in the month of August 2009 and by this it has been declared to proceed with the present system of interest deducting payment up to Rs 1.5 lakh before the calculation of tax liability from whole income against the home loan.
When the paper was released in the year 2009, it had proposed not to go with the exemptions of the interest payment against the home loans but it was not implemented.
Even since the tax incentives expired, the confidence in the builders has been leaking out about the housing market.
The housing market index of the national association of home builders’ is expected to come down touching 21, in June. The consensus forecast of economists showed that the index forecasted in May was the highest to be recorded since august 2007. It is said that the index would be released on Tuesday at 10 a. m EDT.
This program was to end in April, for signing contracts of the tax credit of the government.
A study at Harvard University’s Joint Center for Housing Studies revealed that although housing and home sales have rebounded in the previous year, its recovery is still threatened by unemployment and foreclosures. Nicolas Retsinas who is the director of the center also pointed out that the last few years could have been a recession for the economy as a whole but no less than a depression for the housing sector.