Builders Wary of JP Morgan and Bank Foreclosures

Texas and Austin, along with foreclosure listings of JP Morgan, show a high rate of bank foreclosed homes. But still, house builders believe that in 2011, residential construction market in the city will show an improvement. Builders have pointed out that Central Texas has recorded a gradual progress in relation to construction activities.

Residential house builders still face competition from the low-priced foreclosed homes offered for sale in Austin. In spite of such circumstances, in some areas construction activities for new houses have already begun. For instance, in Falconhead West, more than 250 houses have either been built or are presently under construction. In Central Texas, Falconhead is a subdivision that recording the largest number of sales.

Industry analysts opined that despite the high rates of foreclosed homes recorded in Texas, unexpected low rates of interest and lower property tax rates have encouraged the construction of new homes in that region to rise. The analysts further added that gradual increase in the number of jobs and population in this state has led the builders to hold such an optimistic view regarding the coming year.

Local builders believe that the construction market will continue to improve in future. Though the progress is slow, yet industry members suppose that activities will soon reach their peak, since the period from 2009 to 2010 was characterised by high level of foreclosures and witness minimal  construction activities. JP Morgan foreclosed properties were also included under the foreclosure listing for this period.

During the last half of 2010, the housing market in Austin was adversely affected by bank foreclosed properties. In many places of the state, applications for the permission of construction of new houses have rejected. Whereas industry analysts have observed that in October there was a marked increase in the number of potential buyers who were searching for model houses.

Residential property builders have stated that there will be a slow improvement due to rigid lending rules and low level of confidence amongst consumers. They have also suggested that builders will face a challenging situation as a result of the slow economic condition coupled with these factors.

Additionally, these analysts have stated that in comparison to 2009, applications regarding permission for constructions have risen in 9 of the sub-divisions of the city throughout the year till September 30, 2010. Industries should take inspiration from this fact. Market analysts and builders hold that this indicates that new houses will be able to compete with the foreclosed ones, including foreclosed homes in JP Morgan, in 2011.

Original Post: Builders Wary of JP Morgan and Bank Foreclosures on ForeclosureWarehouse.com