Low-end housing market experiencing rapid decline

Low end homes are experiencing worse sales compared to those on the high end.A recent CNBC report, citing data compiled by Capital Economics, discussed a significant downward trend for the country's real estate market.While home prices and transactions have struggled, with totals fluctuating during the last several quarters, the low end of the market appears to be worse off compared to the high end.”Since their 2007 peak, prices in the low tier have so far fallen by 45 percent compared with declines of 35 percent and 25 percent in the middle and high tiers respectively,” Capital Economics states in its report.The struggles experienced by this sector as a result of tighter mortgage regulations used by lenders. Now, consumers that would normally be acquiring low-end properties are being turned away by banks. Many lenders are now requiring a 20 percent down payment, which might very well be pushing many borrowers out of the market.The article relays that many of the borrowers who lost their properties in New York were on the low end of the market. Nationwide, this has become a trend as well.For regions with improving job sectors, however, such as Houston, real estate transactions could experience gains, as more consumers have jobs and are able to meet these tough lending standards.Courtesy of 2M Realty News?

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