In some good news for people who are planning on buying a new house, NHB, the housing finance firm regulator said that there might be a price correction in the housing segment. The correction might be due to the inventory build up in some areas.
RV Verma, the chairman of NHB said that there is an inventory build up in some areas, and projects there are not selling due to the high price perception. The price correction might be in light of the current trend of downward revision in housing loans.
The chairman, while talking to reporters announced the annual results, marking a 39% increase posted by NHB in net profit of Rs. 387 crore for the financial year that ended in the month of June 2012. The banks had increased its loan disbursements by just 20% and the total loans that were disbursed amounted to Rs. 14,454 crores as compared to Rs. 12,035 in the previous financial year.
It has also been noticed that most of the bank,s including the private sector ones, have reduced their interest rates. Home loan rates were cut by 100 bps by ICICI Bank. HDFC bank has reduced its loan rates of up to Rs. 30 lakh by 10.25 % as well.