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Improve Housing Industry: What To Do?

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By : Roby Hicks    99 or more times read
There are several predictions and forecasts as to what the fate of the housing industry will be. Many claim that the industry will recover by 2015. Others say that it will continue to dive down. No matter what others say, it is important we are aware of the things that have to be done in order for the industry to improve. What needs to be done to help the real estate industry recover?

Just like any business, you have to know the players in the market to learn the ways to improve it. In the housing industry, these vital roles are played by the sellers, the buyers and the lenders. The actions of the sellers will influence the behavior of the buyers. Consequently, the response of the buyers will affect the transactions faced by the lenders.

The sellers

Since we are in a buyer’s market, sellers are expected to exert more efforts. The competition is tough which makes selling a house extremely difficult. Additionally, there are very few buyers. This makes their jobs more difficult. The main challenge that the sellers face is to encourage the buyers to own a home. Some are not convinced to buy a house today because of the economy, which is why sellers have to think of strategies to convince them.

Encouraging the buyers to make a purchase is important because when the number of homebuyers improve, the housing industry will also improve. There are several ways to encourage homebuyers. Some are lured by the tax incentives provided by the government. There are those who purchase a home because of the gifts from their agents. On the other hand, some buyers purchase a home because of the freebies offered by sellers.

The buyers

How the buyers behavior in the market affects the success or failure of the industry. If you look at the recent history of the real estate industry, it had luxurious years because there were overwhelming numbers of buyer.

However, those years were gone. Today, the industry is filled with cheap properties with very few interested buyers. This will make you wonder what happened along the way. Something must have gone wrong for the industry to face this type of ordeal. This is true. Buyers were not carefully examined by some lenders in the past. There were buyers who qualified for a mortgage loan because they agreed to pay a more expensive mortgage term.

The lenders

Without the lenders, many buyers would not be able to purchase a house. This is why their role is crucial to the recovery of the industry. However, they have to examine the mortgage applications very carefully. Only those with good credit ratings should be approved. Subprime mortgages should be avoided at all cost. This reduces the risks of lending. In addition to that, the buyers are rescued from purchasing a property they cannot afford.

It may take a while before the industry fully recovers. This is why everyone should learn what they could do to help improve its current state. The sellers, buyers and lenders all play an essential roles to help the industry improve.
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