Monday, April 27, 2009

H-1B Visa curbs impact on outsourcing and real estate

Bindas Bhai has asked a very relevant question on the impact of H-1b Visa curbs on outsourcing. here is my analysis on that question and I will assess the impact to real estate in India as well. Others can chime in and discuss further.
Question :
Will IT revenues/salaries be hit by the H-1B/L-1B visa clampdown ?
Short Answer : YES
Long Answer : The revenue earned by IT service providers will decrease since the wage arbitrage between the salary paid to the H-1B/L-1B employee versus the hourly rate billed to the client will decrease. Its a well known fact H-1B employees are paid up to 40% lower then local US citizens or green card holders. Many IT service providers charge a hybrid rate or a blended rate to account for onshore and offshore resources. As the number of local onsite employees reduces, the blended rate will tend to decrease. As the revenue earned by the IT companies reduce, so does their inclination to grow the workforce in India, invest in training and hire more employees. The focus is now on cost-cutting be it reduced transportation options, decreased food subsidy and elimination of fringe benefits. All IT companies have a variable pay component which will reduce to zero or almost zero as they face pricing pressure, project cancellation and reduction in onsite billing.
The net impact on the IT service employee is that he has less income when offshore and reduced options to go onshore. Most IT employees factor the onshore component into their salary. Now since that component will be zero for the foreseeable future due to the visa clampdown, their ability to take more liabilities in terms of housing loans and car loans will reduce.
Will H1 visa problem increase outsourcing jobs in India ?
Short Answer : NO
Long Answer: Conventional wisdom will dictate that as H1-B's visa reduce, most work done by the H-1B's will move offshore or to the home country of the H-1B workers. However this is not the case this time. There is huge unemployment within the IT workforce as companies in every corner have cut any surplus employees and are operating with minimum capacity. There is still room for more layoffs and more employees are coming to the market as the quarter revenues keep declining and layoffs mount. There is increased pressure on local salaries and it is no uncommon to see pay cuts up to 30% in many cases. In the case of startups, there are some cases where people are willing to work for free to gain experience with the hope that the employer will hire them when the market turns around. I've seen some billing rates of $10-15 in this market, something which the IT offshore companies cannot match even in India. Tech salaries will continue to decline into the next year and it will not be uncommon to find someone with experience working for $60k, a level we last saw in 1997. As the minimum salary to be paid to an H-1b worker is 60k, there is no wage arbitrage left for the IT service provider. The bigger issue is the clampdown on L-1 visa. L-1B visas have no quota and were used by every IT provider to bring in Indian employees to work in client locations.
The most interesting quote I saw today was from Mohandas Pai, the Infosys CFO. He said we are trying to understand the meaning of the word "employee" as it relates to the new H-1B bill. This sums up the conundrum Infosys is in. If they hire more local citizens and green card holders, they lose the wage arbitrage, they have to pay severances if they layoff locals, they cannot employ the performance appraisal sham to boot out employees by giving tests like they do in India. They now have to play by the US Dept of labor rules, something they have resisted till now. All things considered they will be forced to hire locals, reduce offshore resources to operate more efficiently.
As any experienced professional will tell you, there is a 10x productivity difference between a top IT employee and an inexperienced employee. IT companies operate on the premise that they can hire lower paid fresh graduates in bulk and replace the experienced bunch as the experienced bunch moves onshore. Now with the H-1B clampdown the option to move offshore been taken away, they will be faced with more experienced employees earning higher salaries on bench. As with the sub-prime the whole model worked beautifully as long as the employees kept moving onsite Now that the flow has reversed they have to adapt to the changed scenario. Will IT companies fire experienced staff and replace them with new graduates ? If some of them do, who will hire these experienced folks at their high salaries. Either these folks join new employers at lower salaries or they remain unemployed.
As we discuss IT companies, they are mostly concentrated outside Mumbai. Their real estate markets they affect are mostly non Mumbai. If you look at the polls, there are hardly any NRI's moving to Mumbai. Most end up in Pune, Bangalore, Chennai, Hyderabad and Gurgoan/Nodia. There is a trickle which makes Mumbai their homes after their return.
Now the question to ask is why will someone facing an uncertain future in India, with no hope of going onsite invest in a property of 1 crore ? This question is more pertinent to Mumbai more then any other place. All other cities you can get apts for under 50L, some even at 30L. Now if Mumbai is never considered an IT hub, apart from black money operators who has disposable income of 1cr or will get a loan of 80L in this market ? Now if still one believes Mumbai has headed for 50% jump in prices in the next few years, invest and check back in 2 years.


Anonymous said...


Good Analysis ...!!!

shailesh said...

Bangalore, India--Once a high-flying tech hub, Bangalore is seeing more sober days in the wake of the credit crisis.Firms such as now-bankrupt Lehman Brothers and bought-out Merrill Lynch were big customers and provided millions of dollars worth of lucrative contracts to Indian technology services companies.

Consequently, in the past home-grown Indian outsourcing companies grew by impressive numbers. Infosys and Wipro, the big two employers in Bangalore, were each hiring 10,000 employees or more during recent years. Such spectacular ramp-ups are unlikely to recur any time soon. One large call centre with European and US customers is now refusing to hire anybody that does not stay within a five-mile radius of their centers: the costs are just too high.

For tech employees, jobs no longer come with a lifetime guarantee. Companies are shedding people in small numbers and keeping their actions under the radar. The dreaded pink slips have arrived in Bangalore.

The Y2K and Tech bubble crash in late 90's forced lot of companies to look at India for IT outsourcing for cost saving. We would have been fine, if most companies would have tried to grow their India operations after doing some detailed ROI analysis. But in US (and most other rich countries), ROI analysis is done by Management Consulting companies, which tend to be very optimistic in their assessments. So most companies when they made India plans, they planned for next 20 years and assumed the IT requirements growing at the pace in late 90's. Also the promise of setting up India operation (or may be contracting with one big service vendor) was that they are very cost effective. This whole math of outsourcing was done in early 2000's not from any objective perspective. This resulted in what I call, India's Tech Service Bubble.

This bubble resulted in hiring 2 employees when 1 was required. Just like late 90's bubble, this tech service bubble has busted. The company I was working with started India operation in 2003, and ramped upto 400 employees in 1 year. The company had 600 employees worldwide. Now the revenue of company had not grown to support 400 employees, it was all anticipated revenues. Lot has disappeared as overall IT spending is going down in US. This is like any new thing we humans discover. When Railroads, Steel, Cars or Internet was in vogue, they had bubble and bust. Similarly Indian IT services bubble was overblown and is busting.

There will be outsourcing, just the benefits were overblown and will now need to reflect reality. In that respect it won't provide immediate growth, but will provide long term growth.

Anonymous said...

IT firms try to push out benched staffBibhu Ranjan Mishra in Bangalore | April 27, 2009 09:19 IST

India's second-largest software company Infosys Technologies, for instance, has given its bench employees a choice, wherein they can work with the company's Business Process Outsourcing arm with the same salary and perks. It is also encouraging benched employees to apply for projects using the Intranet portal -- -- the failure of which may also lead to job loss. Wipro
Wipro has already given an option to its bench resources to work for only two days a week and take a 50 per cent cut in their salary . Close to 1,000 employees, including senior managers and project managers, have availed of this offer so far, according to the company.

- the company is encouraging the bench resources, including managers, to come to office 10 days a month at a stretch and take a cut in salary.

- the company is also encouraging some employees to take a sabbatical for six months or more to go for higher studies.

HCL Technologies
HCL Technologies has urged its benched employees to take a pay cut of 25 per cent. It is also asking them to find opportunities inside the company on their own, failing which they may lose their jobs.

TCS , India's largest IT firm, which added 32,000 employees last financial year, including close to 25,000 freshers, says it is very important to ensure utilisation is at least at 74 per cent, though the company claims the increasing bench is not much of a problem.

Hexaware had said the virtual bench has about 350 employees who will get about half their basic salary

Anonymous said...

Bhai, selling homes in India & eyeing on outsourcing work from U.S.
Reading paid subscriptions of Investment banks & raising question on … blog.
Himself is selling RE & advising others to buy.

The Congress who couldn’t do anything in last 1.5 years, what they will change in next 2 years?
What should they worry about, vote buying OR RE buying? We citizens will keep them busy in coalition formation so that they can do less damage to nation.

So guys let it fall then only pick up, minimum 50% price cut is guarantee.


Vik said...

Good points shailesh. This whole drama on truck loads of campus hires worked in the past. Now those days are over. There is only a finite amount of IT work in this world and that amount is decreasing.

Anonymous said...

Supply of real estate has reduced and will continue. Finally it is always demand and supply that will determine the market. Price will play a major role in segmenting the market.

Bears are cautious now in equity market, they are pushed down maybe they will make a come back we will have to wait and watch.

IF IF IF the market moves to 15K then the media will sing s different tune. I am pretty confident in a years time the scenario will change and people like Vulture, Vik and lot others will regret their decision of not buying the property in 09.

IT has played a major role but let me add that in 98 IT was miniscule compared to what it was today. Property prices in 98 (after the 96 crash) were very high if you compare with annual income.

Finally it is always the market which decides the true price and not the bulls/bears or the media.

Lot of liquidity is still there in Indian market and the banks will slowly reduce there lending rates, finally they are in the business of lending.

Ready Homes Back in Demand
According to real estate industry executives and financiers, while demand for housing is slowly beginning to return in Indian cities after a contraction for much of 2008, it is mainly restricted to constructed and ready-for-possession projects. As per executives at leading real estate developers, most buyers don't want to take the risk of waiting for two-three years for a project's completion, and this marks a shift when demand was for under-construction flats. “Demand for under-construction properties has dropped by at least 50% compared with a year ago, because buyers are sceptical about whether builders have adequate funds to complete the projects they have undertaken,” says Ms Shweta Jain, head (residential) at Cushman and Wakefield, a property advisory firm.
23 April 2009

Banks Prefer To Lend To Real Estate
One of the surprises of the current slowdown is the ability of builders and developers to hold on to unsold properties, rather than reduce prices drastically. It is true that real estate prices have started to fall but the fall has not been dramatic. The question is how do these builders manage to have so much holding power? The answer is in the Reserve Bank of India (RBI) data on the sectoral deployment of non-food credit. Between 19 December and 27 February, bank outstandings on account of real estate rose from Rs 76,463 crore to Rs 90,765 crore, an increase of Rs 14,302 crore, or 18.7%, in a little more than two months. On 27 February, 2009, the year-on-year (y-o-y ) growth in loans to the real estate sector was a whopping 61.4%, compared to a y-o-y growth of 19.5% for gross bank non-food credit as a whole.
22 April 2009

Slowly you will also see these kinds of news appearing in news paper, off course these news wont determine the true market but trust me things are slowly favoring the bulls. Indian IT industry will face a slowdown for max three quarters but will come back and in full force. By curbing H1 US is harming there own economy. I foresee FDI coming in India because of US regressive attitude, companies will move out of US in a big way. Friends we have Globlaised in a big way to break this trend we need another world war.

Grow up and accept the fact no point in painting such a scary picture.

Mumbai properties will grow minimum 50% in three years.


Bindas Bhai

Anonymous said...

Really dont know how genuine this news is but these kind of news will apppear more now. Bears have started to get into the shell.

Minimum 50% increase in Mumbai over three years.

Dont time, dont time, dont time!!!

Bindas Bhai

Home interest revives, deals rise 12-15%

26 Apr 2009, 0939 hrs IST, Neha Dewan and Anand Rawani, ET Bureau

Print EMail Discuss Share Save Comment Text:

NEW DELHI: India’s housing sector is showing stirrings of growth with a marked increase in the number of transactions for the last quarter of fiscal Tips for home loan borrowers
Tax deduction on home loan
Be cautious about loans
2009, as the interest rate cuts on housing loans announced by various banks begin to take effect.

The number of residential transactions went up 12-15% for the quarter ended March 31, 2009, over the previous one, according to global real estate consultancy Jones Lang LaSalle Meghraj (JLLM). Leading realty players that SundayET spoke to confirmed there indeed was an uptick in demand in the last couple of months, especially in March.

DLF, India’s largest realty player, managed to sell all 1,400 apartments in its upcoming project in West Delhi within 24 hours at a discounted price, says Rajeev Talwar, group executive director, DLF.

Unitech, which launched two of its affordable projects last month in Delhi NCR and Chennai, too saw an enthusiastic buyer response, according to a company spokesman. The developer sold off 750 apartments in Uniworld Garden II in 45 days of its launch. Another project, Ananda, launched in Chennai and priced at Rs 20 lakh onwards saw 500 apartments being sold off in 10 days, claims the Unitech official.

In Mumbai, more than 2,500 apartments have been sold in the last 40 days, according to Niranjan Hiranandani, MD, Hiranandani Developers.

Reflecting this market movement, banks too confirmed increased activity in the home loan segment. Leading banks that SundayET spoke to said that business from this segment clocked an estimated growth of 10-15% in Q4 against the previous quarter.

“In the sub-30 lakh category, the industry is seeing a higher growth of around 10-15%. However, we are major players in the Rs 30 lakh and above category of home loans, wherein a growth of around 5-10% has been observed,” says Kamlesh Rao, executive VP, Kotak Mahindra Bank.

A senior official from IDBI Bank who didn’t want to be named confirmed the trend.

Anonymous said...

Bindas Bhai,

All your calculation will hold good only if the stock market moves to 15k++ otherwise we will see further erosion of RE.

Stock market touching 15k is impossible for atleast a year or two.

Anonymous said...

China is No.1, India is No. 2 global hot spot: Mark Mobius

Published on Mon, Apr 27, 2009 at 17:40 , Updated at Tue, Apr 28, 2009 at 13:59
Source : CNBC-TV18
Email Print Watch Video

Over the last four or five weeks, hopes have been raised that we may slowly be clawing out of this vicious bear market that has plagued this world for the last one-and-half-years. We don’t know whether the process of rebuilding and recovery has started but some experts are beginning to say, for the first time since 2008, that the correction has happened and feel the economy is slowly getting out of the woods.

Mark Mobius, Managing Director of Templeton, also christened as emerging market guru, signaled it a few weeks back, in early March, when the world was collapsing or the world of equities was collapsing. That time he said he saw great value in emerging markets and many global equity markets may see a very good rebound.

In an exclusive interview with CNBC-TV18's Udayan Mukherjee, Mark Mobius said that market is currently building a base for the next big bull rally, which can be clearly seen “if you look at the valuations, flows of funds, the amount of money being printed not only by the United States but also by the governments around the world. If you look at money supply soon as the velocity of that money increases then you will have a bull market in a big way,” Mobius said, adding that he sees a retest of the lows seen in October but those lows won't be broken.

The worst for the markets is over, Mobius said. “The money supply is increasing in a fast pace, inflation is coming down and with that interest rates are coming down as well. All of these factors have a hand to play in pushing stock market prices up.”

Sounding upbeat on the BRIC (Brazil, Russia, India and China) universe, Mobius said China is growing at an incredible pace and hence in terms of opportunities, that country stands at Number 1. The Number 2 spot, of course, belong to India which is expected to record a growth of 4-5%. Since both these countries have a population of over a billion people, the growth will include rising per capita income as well as a surge in consumption pattern.

Minimum 50% increase in three years for Mumbai

Dont time, dont time, dont time!!!

Bindas Bhai

Anonymous said...

KPIT freezes new recruitments, cuts variable pay by 50% MUMBAI: Mid-size IT firm KPIT Cummins Infosystem has frozen fresh recruitments for next three-four quarters given the turbulence in its core verticals of automotives and manufacturing. Moreover, the company has reduced variable pay component of employee salaries by over 50%. This forms a part of company’s strategy to control internal costs to protect margins at a time when new business is hard to come. The variable pay on average forms approximately 12% of total salary for KPIT employees.

“We are keeping a tight lid on our headcount. We will not be increasing the current number of employees for at least three-four quarters,” said Ravi Pandit, the company’s chairman. He also confirmed that as many as 290 employees in KPIT’s development team were let go in the three months ended March 09.

Anonymous said...

@Bindas Bhai 1:55 AM "the growth will include rising per capita income as well as a surge in consumption pattern"

This moron (does he work for the brokerage firm?) doesn’t know that the ripple effect of the global economy slowdown has JUST started effecting India.

Ask him the basic question : how the heck the consumption will increase when there are salary cuts (30-60%) across the board?

Bharat said...

Like I have maintained before this current Sensex and Dow run is nothing but a bear market rally. It was meant to unload toxic portfolios to the greater fools. Now, within the next few weeks the whole thing will unravel. These folks say 10-15% which means it will fall to 10K and below..

So much for Sensex going to 15k+..

In a similar vein the real estate prices are due for a major, major correction. Do not be a greater fool and buy at these levels..

Anonymous said...

Diminishing Returnees The reapers of India's boom are revisiting the art of frugal living

Anuvab Pal

India not being immune to layoffs, and global companies suffering the way they are, suddenly companies have been saying to their people—it’s over.

"I’m stuck in a foreign country with the financial overheads of a maharaja but no more Wall Street money to back me up," confesses an expat family man who called up his Writers truck a week ago. "It’s not that I want to go home, New York is a graveyard for jobs right now, but I guess I’m scared to live hand-to-mouth in a country I barely know outside posh hotels and restaurants."

Anonymous said...

Bindas Bhai,

Great work keep it up, I agree with you. Now this site has become lively. Wish we had more people like you.

These guys over here are real fools they dont entertain any other view.

Please keep this forum live. I cannot write my name for obvious reasons.


Anonymous said...

then go buy a fre properties anonymouts above and make bindaas bhia happy :)

Anonymous said...

First, its unfair to call Bindas bhai a property dealer as some have done. Lets not be so abusive - the poor guy is making an effort (fairly comprehensive amount of effort) to present the other side of the argument. Lets decide on the basis of the weight of the arguments he makes, not on name calling, which is easily achieved with anonymity on a web site.

I am sure none of us are going to become Bindas Bhai's customers, even if he is, in fact, an out of work property dealer. This place was quite civilised in the past one month. Why spoil the atmosphere by calling him a property dealer when he cannot deal any property here :-)

Second, IT is now a mature industry. They will not grow any more, will not give the same increments any more. That much is for sure, as Vik has so beautifully analysed. It is also obvious that any industry will mature after a while. As someone said, the demand for IT services is finite and is probably already been largely met. Now IT will become more efficient - which means lay offs and working more for less pay.

Real estate on the other hand is not just immature in India - it is almost non-existent compared to demand. There is very little RE activity in the organised sector and those which are there are all robber baron type of companies which like to make money by fooling people.

Situation in China and Hong Kong has been similar for the last 10 years parallel to India.

In all likelihod, organised RE activity will take off in a big way to supply housing in the next 10 years. Like the phone industry and the share brokerage industry it is likely to become very consumer friendly over time. Good days are ahead, the leopard of today will change their spots and become model service providers of the future (although congress will not like that - they like it disorganised)

Demand for luxury RE is probably saturated for the next 3-4 years. But middle level RE in the 25-30 Lakh range has seen little activity in the past 5 years, most have concentrated on the 50-80 Lakh (luxury) range only. There is huge demand and no supply.

There is even more demand in the 5-15 Lakh range for lower middle class.

Once supply comes, there will be massive concrete jungles. In 6 years there will probably be oversupply again in the lower segments. Indirapuram and Ghaziabad are good examples of what the new cities will look like (horrible). There will be water and electricity shortage, poor quality will be rampant. These and oversupply will probably limit further massive growth, but slow growth in tier 2 cities will start and continue for the next 20 years.

RE will be the next IT for India!

Buying a flat will never again make fantastic investment returns, but will a consumable good, something people will buy to use.

Having said that, I feel currency debasement is likely due to poor policies of Congress. So if you have to buy a house for own use, better buy it now before the Rupee loses its value and anything bought by it becomes too expensive in the future.

After all one has to spend ones money some time. RE is definitely better than a luxury car for 10L which depreciates the moment it leaves the store and costs money to maintain (and I am aware that RE also depreciates and costs money to maintain). Most people make money on re-selling a flat - nobody makes money re-selling a car.

What else is there to spend money on, that doesnt feel like one is just throwing money away?

I agree with Bindas Bhai on one thing - Dont time, dont time, dont time.

If you need a house to live in, buy it now, regardless of the state of the market - taking care only that it is within one's means.


Anonymous said...

The global financial crisis (with the collapse of two hedge funds of Bear Stearns) which was triggered due to sub-prime loans is just a half way through. The India IT companies (deriving almost 40% revenues from BFSI segment) which were earlier in denial mode have started showing the true colors. They have resorted to the easiest way of propping up the profits by laying off employees by hook or crook and reducing the variable components of salary.

In US, the next crisis of home loan i.e. Option ARM is on the horizon. Please check the following URL.

A second wave of home foreclosures is ahead, Fed economist saysIt was the height of the housing bubble, and buyers turned to such loans, called interest-only mortgages and payment-option adjustable-rate mortgages, as one way to jump into the runaway market.

Those low house payments are poised to reset to much higher levels in 2010 and 2011 and push more owners out of their homes, Edmiston said.Subprime mortgages fueled their own foreclosure crisis earlier because their payments typically reset after only two years instead of five.
The financial institutions which bundled these loans on Wall Street will be deeper in trouble due to rise in foreclosures. This will have direct and immediate impact on the dependent sectors. The immediate victims will be Indian IT companies.

In the current scenario of shrinking income please don’t spend your hard earned money on buying overvalued housing properties. The housing market is already glutted and you will find more oversupply due to deleveraging of real estate investments by the Techies. The humiliating crash of real estate super bubble is due very soon.

Anonymous said...

Dear Venkat,

I live in Mumbai and i am waiting for a crash but Bhai has given the other side of story.

I dont think that Bhai can make an earning wrting on this blog, neither can he sell his property over here to us.

I would still wait for another one week see how Sensex is perporming and then take a call.

Thanks everyone for your views (Especially vulture, Vik & Bhai)


Anonymous said...

Anonymous 4:28

You can always put across your views politely. There is no point in giving sensible information but putting other guys down just because it does not suite you.

I totally agree with Bindas Bhai about timing the market, Sensex, Interest rates and Govt formation will play a mojor role ahead.

Let us wait and watch and gracefully accept whatever the verdict.


Kapil said...

I don't understand, if somebody has bull case this room start saying that he/she is real state broker!!? I stopped commenting due to same reason as I felt disappointed and I thought my time was wasted.

Anonymous said...

Cash strapped builders have started another ponzi scheme of affordable housing to pay the outstanding debt.

If one will take a close look at the cash flows, almost all current funds are going to serve the interest obligations. Above this the maturing debt is creating another pressure. So to meet the maturing debt obligations builders have started affordable housing scam. It means to pay debt of Luxury housing by Affordable housing. When will the projects complete? Of course, when new sucker will commit to pay for old sucker.
Where the previous projects money has gone? Didn’t you know about the land acquisition done by the builders?
Isn’t it a ponzi scheme?

Builders, politicians cheer affordable homes in India

“Since India eased rules on property investment in early 2005, foreign investors such as Citigroup (C.N) and
Morgan Stanley (MS.N) have piled in, causing land prices to double in major cities.”

Karnataka Bank to restructure Rs 350 cr loans

Parsvnath expects to cut debt by a quarter in FY10

“Our major focus is to satisfy the financial institutions," he said.

Unitech postpones repayment of debt

So guys let it fall then only pick up, minimum 50% price cut is guarantee.


Bharat said...

One of the most important thing in any acquisition is the price. If the intrinsic value of something is high and the price is low then its worth buying else its not a value buy.

Buffett, Ben Graham, Minsky all have proved one thing that things move in cycles. So if theres been a super bubble in RE then a super bust has to happen..its as simple as that. So its not a matter of timing or anything..just that one needs to buy at the right price. And this formula of buying at the right price has been proven to be a mega success as far as investment theory goes. Timing etc is for traders...who want to buy and sell.

I want to buy and hold and therefore I need to buy it at the right price. Regardless of what someone tells me, logically this is not the right "price" to buy. So as far as I am concerned thats the end of the argument. Forget time, GDP, IT, Govt. Constitution or whatever parameter one chooses to arrive at a forecast...I will wait for the down cycle and pick it up at the right price. This might take a year or two..but no harm, I can wait...

Anonymous said...

Thanks Anon, Venkat, Kulkarni for your support.

Economy responds to booster shots

Indicators show economy's set to regain

India may steel show in global road to recovery

High savings, sufficient liquidity to drive growth: Kidwai

India's industrial prod may rise 10 pc in March: Macquarie

KKR sees global deal flow improving - report

Minimum 50% increase in 3 years for Mumbai property.

Dont time, dont time, dont time.

Bindas Bhai

Anonymous said...

Home Vacancies Rise in U.S. to Record Amid Recession April 27 (Bloomberg) -- A record 19.1 million homes stood unoccupied in the first quarter and the U.S. homeownership rate fell as the recession sapped demand for real estate.

The number of vacant homes, including foreclosures, properties for sale and vacation properties, jumped from 18.6 million a year earlier, the U.S. Census Bureau said in a report today. Households that own their own residence declined for the third straight quarter to 67.3 percent.

The U.S. financial crisis and falling home prices have shattered the confidence of homebuyers. The percentage of people who said they plan to buy a home in the next six months dropped to a 26-year low in March, according to the Conference Board in New York. Job losses will continue to erode real estate demand, according to an April 23 report by Mark Fleming, chief economist for First American CoreLogic Inc. in Santa Ana, California.

“We expect home prices to continue to decline into 2010 as economic conditions and excess housing inventories dampen prices,” Fleming said in the report. “Decreases are now being driven by rising unemployment and a high volume of distressed home sales.”

Gadadhari_bhim said...

An Indian Outsourcing Hotspot Chills out

Swetab said...

Hi reqd..
Can the H-1B case rejected straightaway without any receipt.

Please suggest.....

Anonymous said...

plz. suggest can a H-1B case be rejected straight away.

Anonymous said...

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