Foreclosures and Cheapest Homes Not Good for Overall Economy- By: John Cutts
A big number of the cheapest homes can be found in several areas of South Carolina since the state has not been spared from the foreclosure crisis. This can be good news for buyers, but for the overall economy of the state and the whole country, experts agree that they are a negative factor.
Greenville foreclosure listings and distressed property listings all over the state were some of the biggest concerns for South Carolina in 2010. At an annual economic conference in the state, several economists cited the presence of these foreclosed properties as a major factor hindering the area's economic recovery. The same issue is being discussed when it comes to the national level, although experts vary in their views about certain other aspects of the U.S. economy.
Most economists agree that the problem of South Carolina home foreclosures will continue until 2011, the same way it will remain a problem for the whole country. However, some economists believe that improvements in consumer spending, corporate profits and improved credit availability to small companies will be able to offset some of the negative effects of the troubled housing industry depending on how much they improve next year.
Aside from the thousands of the cheapest homes dragging the values of residential properties down, economists also stated that taxes, health care and unemployment will hinder economic recovery. Experts are divided when it comes to the initial prediction that the whole country will grow by 3% in 2011. Some believe that the growth will be higher, while others asserted that it will be lower.
The biggest percentage leans toward the projection that the 2011 economy will remain much the same as the current year. They stated that foreclosed properties in home listings will continue to hold back sustained economic recovery, particularly in areas with the highest foreclosure rates. A bigger percentage of economists also stated that if ever an economic growth is to happen in 2011, it will be minimal at best and will be highly dependent on consumer spending.
Meanwhile, housing markets are expected to continue to suffer from declining values, with the cheapest homes likely to still be available in 2011. In South Carolina, both housing market and the general economy are expected to be much the same as 2010.
Article Source :
Author Resource :
John Cutts has been educated in the finer points of the foreclosure market over 5 years.