Categorized | Residential

Consumers Have Dismal View of United States Housing Market

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In what should not come as a surprise, many United States citizens are increasingly worried about the state of the country’s residential real estate market. The majority of people believe that the housing market will continue to face sharp declines into the next year, both with respect to sales, and also prices of homes.

Fears of a second recession are certainly taking a toll on the overall public outlook on housing. Many people are not sure as to whether or not a second recession will take place. However, the very possibility of another recession has many consumers leery of even considering the thought of entering the housing market at this time.

It is possible that the residential real estate market may experience a decline of more than three percent in the next year. The three percent decline may grow even larger when considering foreclosures and short sales.

Decreasing consumer confidence is certainly not a good sign for the United States housing market, as measures continue to be taken in an effort to rebuild the overall prospects of growth within the sector. The federal government has taken measures to keep interest rates artificially low for the next few years in hopes that the low rates will promote more housing development and purchases.

However, even with the record-low interest rates, many consumers are opting to stay away from, or simply delay the purchasing of a first home. Uncertainties within the job market, and overall national economy have created an overall scenario where renting continues to remain the most viable option for most families.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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