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As the US economy goes into recession Americans are finding it's difficult to buy a house. Real estate agents are having a tough time.
John Jameson is the president of a consulting firm in Washington.
He can earn more than 700-thousand US dollars a year.
Thirteen years ago, John bought a villa in Washington for 250-thousand dollars.
But he moved out after he and his wife divorced.
Since then, he has been living with his daughter in a rented apartment.
John now wants a change.
This villa costs nearly 2.5 million dollars.
It's merely three blocks away from his office.
John Jameson, Home Buyer, said, "It's located around Capitol Hill. Its surroundings are the best in Washington ... "
John decides to buy the villa and apply for a mortgage from the bank.
John Jameson, Home Buyer, said, "My income is good. I have a lot of deposits and good credit. I thought they would say there's no problem ..."
But it turns out to be opposite.
John Jameson, Home Buyer, said, " ... see very high-level managers at the bank ... higher down payment than half a year ago ... "
A higher down payment is not a big deal for John.
But he has to wait longer for the mortgage approval.
And that's what really makes him anxious.
The banks have their own explanation for raising the threshold.
According to statistics from the National Association of Realtors, ten percent of US home buyers with mortgages are behind on their payments for more than a month, or face foreclosures.
The stricter evaluation procedures and higher down payment are preventing many low-income Americans from buying houses.
This is creating tough times for real estate agents.
Wang Jianyu, Real Estate Agent, said, "It used to take one or two months to sell a house. Now it normally needs three to four months, or even more. "
Real estate developers face the same woes.
Jair Lynch, Real Estate Developer, said, " ... a very big impact on our business."
In 2008, nearly five million homes have been sold in the US, over 12 percent down from last year.
And the sales volume for new homes is 486-thousand, over 37 percent less from 2007.
Lawrence Yun, Chief Economist, National Association Realtors, said, " ... US housing market is struggling."
In the sluggish market, John Jameson only wants a home where he and his daughter can enjoy a more comfortable life. John anxiously looks forward to the mortgage approval, and of course, the day they will move into the new home.
GRAPHICS
PENDING HOME SALES
4,958,000
DOWN 12.3%
NEW HOME SALES
486,000
DOWN 37.3
SOURCES: NATIONAL ASSOCIATION OF REALTORS
(CCTV December 25, 2008) | 
