There's no question that the property crash of 1 or 2 years gone 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 issues in the housing market.
So until folk start buying homes again plenty of other industries will continue to be lethargic.
After all , there are many industries concerned in the housing market. Not only real estate related industries like home sellers and mortgage corporations, but construction-related enterprises like home builders, plumbers, floor installers and painters. Also enterprises that service those industries like home repair stores or furniture and appliance stores.
Yes there are lots of related businesses waiting for the housing market to recover.
So the actual question is... When will the property market get better?
Of course, it's all difficult to predict. So many things must change. And yes the economy as a whole is perhaps the gigantic culprit.
Companies won't hire until they feel that they have buyers willing to buy. Customers can't buy till they have jobs and money or at a minimum the confidence that more cash is on the way.
So one part of the economy is waiting for another which is waiting for another. It's a viscous cycle.
And in many ways, it's all mental. Like someone said... "We have nothing to fear but fear itself."
Yes a down marketplace is almost a self-fulfilling prediction. Until folks feel more confident they do not take chances on huge purchases, like houses or automobiles, or take vacations or perhaps buy sizeable appliances like Televisions. Everybody cuts back on spending, which of course just doesn't help things because it means businesses don't hire, or worse, go into bankruptcy. Which of course means less jobs.
And round and round we are going.
So everything is related and basically due to some other part of the economy breaking down.
Take the housing market...
With real estate prices so low, many people do not really wish to sell because they think they are losing money matched against what their homes were worth on paper 1 or 2 years ago. But that suggests fewer houses are on the market. And that means less sales can happen and that eventually means fewer sales.
Currently there are fewer houses available for sale than there's been in many years. Available places up for sale essentially went down over 25% in January of 2013 matched against Jan of 2012. And though home sales and values were high in January of 2013, they could have been a lot better if there were more houses on the market.
And with the lower housing prices, people with underwater homes are actually doing short sales to get out from under a tricky situation. This keeps housing prices low as well. Though selling short sales may be useful in the short run to get the housing market past the foreclosure crisis we are still experiencing.
So that you can see, there's lots of reasons why the housing market has been so slow to recover. It's still almost a perfect tempest of issues that must be overcome before we see things back to basics with a powerful home market and overall economy.
So it comes back to being patient and perhaps taking an opportunity on buying something, just to help the economy.
So until folk start buying homes again plenty of other industries will continue to be lethargic.
After all , there are many industries concerned in the housing market. Not only real estate related industries like home sellers and mortgage corporations, but construction-related enterprises like home builders, plumbers, floor installers and painters. Also enterprises that service those industries like home repair stores or furniture and appliance stores.
Yes there are lots of related businesses waiting for the housing market to recover.
So the actual question is... When will the property market get better?
Of course, it's all difficult to predict. So many things must change. And yes the economy as a whole is perhaps the gigantic culprit.
Companies won't hire until they feel that they have buyers willing to buy. Customers can't buy till they have jobs and money or at a minimum the confidence that more cash is on the way.
So one part of the economy is waiting for another which is waiting for another. It's a viscous cycle.
And in many ways, it's all mental. Like someone said... "We have nothing to fear but fear itself."
Yes a down marketplace is almost a self-fulfilling prediction. Until folks feel more confident they do not take chances on huge purchases, like houses or automobiles, or take vacations or perhaps buy sizeable appliances like Televisions. Everybody cuts back on spending, which of course just doesn't help things because it means businesses don't hire, or worse, go into bankruptcy. Which of course means less jobs.
And round and round we are going.
So everything is related and basically due to some other part of the economy breaking down.
Take the housing market...
With real estate prices so low, many people do not really wish to sell because they think they are losing money matched against what their homes were worth on paper 1 or 2 years ago. But that suggests fewer houses are on the market. And that means less sales can happen and that eventually means fewer sales.
Currently there are fewer houses available for sale than there's been in many years. Available places up for sale essentially went down over 25% in January of 2013 matched against Jan of 2012. And though home sales and values were high in January of 2013, they could have been a lot better if there were more houses on the market.
And with the lower housing prices, people with underwater homes are actually doing short sales to get out from under a tricky situation. This keeps housing prices low as well. Though selling short sales may be useful in the short run to get the housing market past the foreclosure crisis we are still experiencing.
So that you can see, there's lots of reasons why the housing market has been so slow to recover. It's still almost a perfect tempest of issues that must be overcome before we see things back to basics with a powerful home market and overall economy.
So it comes back to being patient and perhaps taking an opportunity on buying something, just 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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