Reality stocks in for a big correction

The real estate stocks are experiencing a huge correction. Most of the stocks including heavy weights like DLF, Untiech, Parsvnath and omaxe are witnessing heavy correction. The basic reason behind this is that they are now in for a phase where there would be a sharp reduction in demand for their products and would result in fall in realestate prices. Many of the companies like Parsvnath and omaxe are in dire need of cash to meet their commitments. Omaxe had earlier pleged its shares to raise money and now the news is that the promoters are intersted in selling a part of their stock to raise money. With interest rates on a rise and likely increase in EMI's there is likely to be a fall in the total disbursement of home loans further adding to the problems of the real estate players. So if you are in for investing in these stocks then dont expect quick returns. You need to be careful and take a long term view of the stocks.