Housing market gets boost

Prague Post |

4 December 2009

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The government has approved a bill to guarantee loans for construction companies or individuals to build rental housing throughout the country in a dual effort to boost the frozen construction industry and tackle a nationwide housing shortage.

Comments

Submitted by Rener_S on December 12, 2009 - 08:02.

Deteriorating conditions in the housing market can substantially impact mortgage companies such as lenders. The immediate reaction by mortgage companies to the housing market collapse was to tighten credit. They pulled in the reins so much that almost no one who needed money could get it. This seemed a justifiable reaction considering the magnitude of the economic turmoil. One problem with looking back too long is that the economy doesn’t move forward. The role of appraisers now has become one of defender of the bank. They seem to have swung too far the other direction and are being reactive to the crisis the same way they were reactive to the greed that caused it. The truth remains that no deals equal no money for anyone.