Barack Obama urged to lead ‘phase 2’ of USA property market recovery

It was predicted to be one of the
closest US Presidential elections in years. However, Barack Obama ended up comfortably
securing a second term in office, winning the popular vote as well as 332
Electoral College votes.

With promising new emerging
regarding real estate in the US, the President has been urged to lead ‘phase 2’
of the country’s property market recovery.

Obama urged to help loosen mortgage lending to help US property buyers

IPIN Global reports that ‘there
looks set to be more real estate investment opportunities in USA’ after Freddie
Mac posted positive growth figures in the third quarter of 2012. The mortgage
financier recorded a $2.9 billion (£1.8 billion) third-quarter profit, a rise
of approximately $7 billion (£4.4 billion approx) from the loss made during the
penultimate quarter of 2011.

Donald Layton, Freddie Mac’s
chief executive, told the Financial Times
that the profit was the result of “favourable market conditions, including
the continued improvement in the housing market, as well as our ongoing efforts
to minimise losses on our legacy book”.

While the signs
for the US property market are good, industry experts have called for President
Obama to waste no time in leading phase two of the US residential real estate
recovery.

Dr Alex Villacorta, director of
research and analytics at Clear Capital, told Property Wire: “Now that the election is finally behind us,
there should be no more political risk in addressing the housing problem head
on. President Obama’s housing policies must evolve to turn the recovery’s
sprint into a marathon.”

However, many buyers continue to
face a tough lending market. IPIN Global reports that ‘many want to seize the
opportunities created by low prices, but are unable to secure the finances.’

Mr Villacorta added: “With a
re-election secured, president Obama has the opportunity to stimulate lending
activity by being bolder on policy. National gains of 4.6 per cent over the
year were enough to grab the attention of voters, and rightfully so.”