Categorized | Residential

Housing Market Holding Back Economic Recovery in the US

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Officials at the Federal Reserve believe that the United States housing market has been a major factor in slowing down true economic recovery in the United States. There have been a variety of other factors that have led many to believe that the economy is set to enter recovery mode.

 

There have been signs of increased consumer confidence, and the employment numbers have certainly been improving. However, the struggling housing market has prevented any kind of true growth in the economy, and in many ways, it continues to hold the United States in a recession.

 

The United States has failed to truly work its way out of the current recession, leaving many people frustrated with the state of the economy. The fact that housing sales are down, and prices continue to significantly drop is one of the main reasons why the residential real estate market continues to prevent any chance at a true recovery.

 

As residential real estate prices continue to fall, the economy is expected to remain in its slump. Many homeowners are less inclined to spend money because they have already lost a great deal of their savings due to the heavy declines in housing values.

 

Economists believe that the residential real estate market will start to show real signs of improvement in 2013, though prices will likely drop even further in 2012. As such, any kind of true recovery for the national economy most likely will not be seen for another year. Some economists expect, though, that the economy will come back strong once there is some consistent improvement in the housing market.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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