Everything must end where it is started and the crisis will also probably end in America, most probably on the real estate market, which is where the breakdown began and triggered the avalanche of problems that we encountered during the last year or two. This is why every good data from the United States makes us all especially happy.
For starters, the number of houses that went to construction in August grew by 1.5 percent to almost 600 thousand, 598 thousand more accurately, which is the largest increase in the nine months of 2009. Also, work has begun on 25 percent more family housing units and soon government incentives to build first houses will start too. This all had a positive impact on the labor market, which is slowly showing signs of recovery as the number of applicants at the Department of Employment fell by 12 thousand.
Besides all mentioned above, the fact that the U.S. central bank, the Federal Reserve, has plans to insert further 1.25 billion U.S. dollars to the mortgage market echoed all over the place. The goal is to revive the stumbled U.S. economy through the recovery of the financial system and reduce the various requests for FED’s assistance from banks. Several support programs were also approved aimed at combating the credit crisis that started two years ago, in August 2007. Since the start of 2009, FED invested almost $ 700 billion in mortgage insurance, and by April 2010 there are plans to spend another 556 billion in order to maintain low interest rates.
It seems that the crisis in the banking system of the United States finally ended and now is the time for programs that will strengthen the economy again. Besides the obvious reasons why this is good news for the citizens of the United States, it is also very good news for the rest of the world because it signals the recovery of financial and real estate markets in other countries that were hardest hit by recession, especially in Europe. Such developments should also positively affect the recovery of the economy in Croatia, while the increase in purchasing power could return foreign customers to the Croatian property market.