There's no question that the estate crash of 1 or 2 years ago has put a damper on the whole economy. It lead directly to many lost roles abd some industries, like construction, have practically been decimated by the problems in the home market.
So till folk start buying homes again plenty of other parts of the economy may continue to be lethargic.
After all , there are several industries concerned in the housing market. Not only property related industries like home sellers and mortgage companies, but construction-related enterprises like home builders, plumbers, floor installers and painters. Also firms that service those companies like home repair stores or furniture and appliance stores.
Yes there are lots of related firms waiting for the housing market to recover.
So the real question is... When will the housing market get better?
Of course, it's all hard to predict. Such a lot of things must change. And yes the economy in total is perhaps the enormous culprit.
Companies won't hire till they feel like they have buyers willing to purchase. Consumers can't buy till they have jobs and cash or at the very least the confidence that more cash is on the way.
So 1 part of the economy is waiting for another which is waiting for another. It is a viscous cycle.
And in some ways, it's all mental. Like someone said... "We have nothing to fear but fear itself."
Yes a down economy is almost a self-fulfilling prediction. Till folks feel more confident they do not take chances on big purchases, like homes or automobiles, or take holidays or even buy big appliances like TVs. Everyone cuts back on spending, which of course just makes things worse because it means firms don't hire, or worse, go out of business. Which naturally means fewer jobs.
And round and round we go.
So everything is related and actually caused by some other part of the economy breaking down.
Take the housing market...
With real estate prices so low, many individuals do not really wish to sell because they think that they are losing money compared to what their houses were worth on paper a few years ago. But that means less houses are on the market. And that suggests less sales can happen and that at last means fewer sales.
At the moment there are less homes available for sale than there has been in many years. Available places up for sale really went down over 25% in Jan of 2013 matched against Jan of 2012. And although real estate sales and values were high in Jan of 2013, they might have been far better if there were more homes on the market.
And with the lower housing prices, folk with underwater loans are actually doing short sales to get out from under an awkward situation. This keeps home prices low too. Though selling short sales may be useful in the short run to get the home market past the foreclosure crisis we are still experiencing.
So that you can see, there's plenty of reasons why the home market has been so slow to recover. It's still virtually an ideal storm of Problems that have to be overcome before we see things back to normal with a strong housing market and overall economy.
So it comes back to being patient and perhaps taking an opportunity on buying something, simply to help the economy.
So till folk start buying homes again plenty of other parts of the economy may continue to be lethargic.
After all , there are several industries concerned in the housing market. Not only property related industries like home sellers and mortgage companies, but construction-related enterprises like home builders, plumbers, floor installers and painters. Also firms that service those companies like home repair stores or furniture and appliance stores.
Yes there are lots of related firms waiting for the housing market to recover.
So the real question is... When will the housing market get better?
Of course, it's all hard to predict. Such a lot of things must change. And yes the economy in total is perhaps the enormous culprit.
Companies won't hire till they feel like they have buyers willing to purchase. Consumers can't buy till they have jobs and cash or at the very least the confidence that more cash is on the way.
So 1 part of the economy is waiting for another which is waiting for another. It is a viscous cycle.
And in some ways, it's all mental. Like someone said... "We have nothing to fear but fear itself."
Yes a down economy is almost a self-fulfilling prediction. Till folks feel more confident they do not take chances on big purchases, like homes or automobiles, or take holidays or even buy big appliances like TVs. Everyone cuts back on spending, which of course just makes things worse because it means firms don't hire, or worse, go out of business. Which naturally means fewer jobs.
And round and round we go.
So everything is related and actually caused by some other part of the economy breaking down.
Take the housing market...
With real estate prices so low, many individuals do not really wish to sell because they think that they are losing money compared to what their houses were worth on paper a few years ago. But that means less houses are on the market. And that suggests less sales can happen and that at last means fewer sales.
At the moment there are less homes available for sale than there has been in many years. Available places up for sale really went down over 25% in Jan of 2013 matched against Jan of 2012. And although real estate sales and values were high in Jan of 2013, they might have been far better if there were more homes on the market.
And with the lower housing prices, folk with underwater loans are actually doing short sales to get out from under an awkward situation. This keeps home prices low too. Though selling short sales may be useful in the short run to get the home market past the foreclosure crisis we are still experiencing.
So that you can see, there's plenty of reasons why the home market has been so slow to recover. It's still virtually an ideal storm of Problems that have to be overcome before we see things back to normal with a strong housing market and overall economy.
So it comes back to being patient and perhaps taking an opportunity on buying something, simply to help the economy.
About the Author:
Rick Hart is a web business specialist. He provides tools for short sale counsels in Tampa that help with loan modifications, short sales and foreclosures.
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