The impact of the downturn

Friday, May 1, 2009

The economic crisis has led to an unforeseen slump in the housing industry in the US. The price of an independent house in Detroit has come down to as low as $10000. About 1800 houses are up for sale in Detroit and the price of these houses which were around $100000 some years ago, are now at a low of around $10000. The rest of the amount is payable to the bank from which the house owner has obtained loan. People from Britain and Australia have now begun to invest in these properties as they expect to get high returns when the situation becomes better. Real estate agents say that the investors insist upon getting houses in large numbers - in hundreds, and not a few at a time, to invest in. House prices that were around $50000 on an average, in 2003, have gone down to around $8000 in 2004. The current price stands at $6400, on an average.