Categorized | Residential

Housing Market in US Set to Hit Rock Bottom

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Economists now believe that the United States residential real estate market may finally be bottoming out in the next few months. In order for the market to bottom out, however, the current monetary policy must be tightened.

 

With a strengthened housing market, economists believe that interest rates could finally start to increase. They believe that increased interest rates would play an instrumental role in increasing the values of homes and ultimately pushing the United States out of the current recession. In order for interest rates to rise, economists feel that the employment rate must continue to improve, and the government must take a more proactive role in helping the real estate market thrive.

 

The residential real estate market in the United States has been more difficult to read in the past few months than it has in years. The number of housing starts fell in the month of February, though the number of multi-family constructions skyrocketed. There are roughly three million foreclosures, which is nearly three times the number of foreclosures that were on the market just before the recession. Housing prices have dropped nearly seventy thousand dollars since then.

 

While the market may bottom out, and then grow at a strong rate, the number of foreclosures may still continue to rise. In fact, economists are predicting that nearly eight million homes will face foreclosure in the next four years. Those homeowners that will face foreclosure are likely those that owe more on their home than it is currently worth.

 

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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