It is known that in recessions, the sales of houses drops. As we try to get out of the recession, we have been going up in the sales department. Lately though, the sales have dropped by 1.8%. This isn't really a surprise with our unstable economy.
Analysists think that the reason for this disruption is because of banks halting the amounts of foreclosure to investigate some flawed legal documants.It isn't that hard to figure out when the homes will start selling again; it is when the economy becomes stabilized. As soon as that happens, we won't have to worry about what we can spend our money and what we cannot. This article presents what happens every time in a recession.
3 comments:
Though I agree that this unstable economy has in fact led to declining housing sales, I think it will probably take more than some stability to fully fix the problem. This is because new homebuyers as well as banks will probably be more weary of signing onto mortage agreements after this fallout in unwise lending practices.
The reason that the home prices/sales are dropping/dropped because people realized that these houses aren't worth what they are paying for. Also people are believing that the prices of houses will drop further, so whats the point of buying a house that will be worth less in 6 months? During the good economic times speculators rose the price of these houses to levels were the shouldn't have been risen too.
People aren't spending money because the economy is bad, and the economy is bad because people aren't spending money. Talk about irony (and chiasmus, if you want to get literary). Isn't this a self-perpetuating problem?
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