Categorized | Residential

Housing Market is Nearing Bottom According to Economists

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Economists and expert mortgage analysts both agree that the residential real estate market in the United States is finally approaching its bottom. However, after years of false bottoms, there are still those that have legitimate doubts as to whether or not this most recent bottom will be the last.

 

While the residential property market has shown strong improvements in some areas, it has continued to have a weak performance in others. In areas with struggling markets, there is the concern that sellers are opting to wait until the market improves, causing inventory to drop. Additionally, buyers are waiting to buy until they are sure that the market would continue to descend even further.

 

Those that believe that the market is approaching its bottom believe that their claims will be evident in the second and third quarter.

 

One key policy that they believe is crucial to getting the housing market back on its feet is to convert the many foreclosures into rental units for those currently living in them. The family that foreclosed would be given the opportunity to remain in the home provided they pay the bank rent. After a few years, they would have to either move on to a different home, or buy the home back from the bank.

 

The federal government has struggled with trying to correct the current state of the housing market. Prices remain down across the majority of the nation. They are expected to continue dropping in some areas, as homeowners struggle with both mortgage payments, as well as taxes.

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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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