Categorized | Residential

The Two Faces of the United States Housing Market

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For the majority of the population, the United States housing market remains inside a cloud of uncertainty. Many homes have remained for sale for months or even years, and prices have fallen thirty percent or more. The average price decline during the most recent real estate crash exceeds that of the Great Depression, thus emphasizing the difficulties faced within the market.

While homes in some areas can’t even sell for ten thousand dollars, and at least twenty-five percent of Americans owe more on their house than it is actually worth, there is a segment of the residential real estate market that is literally booming. The wealthy elite population continues to take advantage of low pricing and incredibly financing offers. In fact, multi-million-dollar homes have been in such demand that pricing on the homes continues to push towards boom levels.

The United States housing market has reached a point where multi-million-dollar homes have seen increasing prices, while homes under one million dollars have seen greater decreases.

The market gives further evidence to the claim that the rich continue to get richer, and everybody else continues to fall into poverty.

There are a variety of factors contributing to the creation of two distinctive faces in the United States housing market. Because mortgage loan restrictions have become very stringent, the average potential homebuyer will likely be denied his or her request for a loan. On the other hand, the wealthy are generally able to meet down payment restrictions, and are essentially guaranteed a loan of any size.

In addition, Wall Street and auto industry executives are earning great bonuses for performance, and are using these bonuses to buy a second or third house in the richer areas of the country.

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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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