The housing market crisis sent Indian Americans on a buying spree across the country, with the exception of New York City. Even as the economy starts to stabilise, Indians still continue to buy property.
"Indians still continue to buy," said Hitesh Kadakia, president, American Royal Mortgage Corporation, New Jersey. "They have enough income and down payment and easily qualify for a loan. Moreover, unlike many others, we will not buy for emotional reasons. We buy a house only when we can afford to pay."
Most real estate brokers credit the education level of Indians for warding off the foreclosure tsunami in the community.
"Things have improved somewhat in terms of the response from banks," said Seema Agnani, executive director, Chhaya Community Development Corporation, a non-profit organisation based in New York that counsels home buyers and owners to prevent foreclosure.
"Some are finally giving owners loan modifications that comply with the Home Affordable Modification Programme. On the other hand, many of those who were in the initial stages of foreclosure have lost their homes. It's a mixed pool, but if people get to us early enough we seem to have a much better rate of getting the loan modified."
New Jersey-based Ragini Goel, a realtor with 28 years of experience, said the housing situation varied according to the area. "In New Jersey, April has been a very busy month due to the buyer incentives. This year seems to be better than last year," she added. "Real estate is cyclical. I feel prices have bottomed out, they might take a long time to come back, but they will."
In California, the residential foreclosure market has softened a bit, but the market has shifted to commercial real estate. "Due to a large number of vacancies, bank defaults have forced price reductions on both office and apartment buildings. Though the rents are usual in many cases, prices have gone down considerably, even 35 percent in many cases," said Jeevan Zutshi, owner, Jeevan Zutshi Real Estate Services and an expert on residential and commercial real estate.
He doubts the intentions of commercial lenders like Chase who are not doing anything to alleviate landlords' suffering. "It appears at times that they welcome foreclosures," Zutshi said. "Perhaps they have asset management capabilities as well now and are anxious to acquire these properties by defaulting on them.
It is brutal. So many people are wondering whom Obama's efforts in this direction have been helping."
The situation is not much better for real estate brokers and loan officers in New Jersey. Their numbers have come down from 30,000 to not more than 2,500.
"Brokers and loan officers are leaving the profession because it is difficult to get loans and banks ask for so many things," said Kadakia.
He thinks the economy will return to normal only by 2015. "The economy is still in crisis; unemployment and inflation are still there. We don't have enough immigrants coming nowadays," he said.
Agnani added, "Although we are seeing the economy improve in the news, it has not trickled down to those most in need yet. Some say it will take another five years."
