Record-low borrowing costs help absorb foreclosures in New York, NY
The Conference Board's confidence index for April 2012 came in at approximately 69.2 compared to a revised 69.5 in the previous month, reports Bloomberg News. While the median statistic fell short of what a median forecast of economists called for, slowing home value declines and improvements in employment opportunities bode well for real estate in New York, NY.
March 2012 saw the smallest increase in employment in the past five months, which may have raised additional concern, but unemployment rates overall continue to impress economists. In fact, the housing market has already begun to build its new foundation in several major metropolitan areas across the United States, according to the S&P/Case-Shiller index.
Home prices in 20 U.S. cities dropped at slower rates by the end of February, indicating stabilization in the national real estate market may be in the near future. The index of property values fell 3.5 percent from a year earlier, the smallest 12-month drop since February 2011. When home values steady and values improve, the groundwork for recovery is likely to be established, and buyers' confidence will begin to impact economic change.
In New York City, record-low borrowing costs have already begun to affect growth. These premiums and increases in hiring have helped the market absorb a significant amount of foreclosures in the area, the news source reports.
Recently, in it's largest prospective sale yet, CWCapital Asset Management LLC, began to market $345 million of distressed debt, according to Bloomberg News. The company plans to sell a portfolio linked to properties spanning the country, including several properties in Brooklyn, New York. While CWCapital works closely in troubled commercial mortgages, its efforts greatly influence market recovery in certain neighborhoods, as new businesses with clean slates are able to enter the community and begin turning profits. When new businesses show signs of prosperity in areas that saw a troubling amount of distressed short sales and foreclosures over the past few years, consumer confidence may begin to improve, leading to an increase in spending and a more stable economic
outlook in the U.S.
Homebuyers who want to move to a city where reform and recovery have already begun may want to consider the Big Apple. This metro area has long been at the heart of U.S. economics, and its rebound may spark growth in the rest of the nation.