Categorized | Residential

Real Estate Market Faces Uncertainty On Fears of Worsening Economy

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The volatility and general decline of the United States stock market has many potential homebuyers playing the waiting game. Although fixed-rate and adjustable-rate mortgage loans are at, or near record lows across the country, many people are shying away from closing on housing deals due to the uncertainties that lie ahead.

Homebuyers are still very cautious following the previous real estate crash, as they are looking to avoid buying a house unless they have the utmost job security. Most individuals would prefer not to end up in foreclosure, and have their credit destroyed in the future. With that said, they are delaying, or even canceling the deals to close on their first or second home. Some potential first-time homebuyers aren’t even interested in the housing market at this point, as the economic woes may provide for lower prices in the future.

The United States stock market has seen a serious decline over the past month, prompting fears of a double-dip recession. The decline has increased doubts related to the housing market, and also caused money intended for down payments to disappear. With a weakened jobs report, there isn’t a lot of optimism that would be needed to cause at least a slight boom in the housing market.

Housing prices have continued to drop, coming in at nearly eight percent below what they were at the start of the economic recovery. Experts and policy makers had hoped that low rates would entice potential homebuyers to make a purchase, but as they see their retirement funds drop, it is unlikely that they will consider buying any time soon.

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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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