Positive Signs in Real Estate Market

There are underlying signs of improvement in the new home market according to a recent UF study. Experts have sited our high growth rate as a factor supporting a quick recovery from the recent real estate setbacks. They also site the moderate production of new homes to help keep things in balance. Their main concern, though is the turmoil in the investor market securities backed by sub prime loans. Institutional investors have slowed and/or stopped their purchase of these securities due to the high rate of foreclosure and default. The problem this creates is a lack of funds banks can use to re-lend to new borrowers.