Categorized | Residential

United States Housing Market May Once Again Hit Rock Bottom

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As the residential real estate market in the United States continues to struggle, there are growing indications that the market may, once again, hit another rock bottom. For some time, there was hope that the market was starting to recover. However, even with record-low interest rates, and various measures taken by the government, the housing market will likely hit another new low.

Analysts believe that by June of 2012, the housing market will drop to the lowest level it has been since the start of the housing crash. By that time, they will have fallen roughly thirty-five percent from their peak in 2006.

Despite the efforts made by the government, there are some factors remain incredibly difficult to overcome. For example, foreclosures have once again started to increase, unemployment continues to linger at high rates, and lenders have become increasingly stringent when it comes to giving out mortgage loans.

The news of a third bottoming out of the residential real estate market is raising serious concerns among real estate analysts, as it will likely lead potential homebuyers to become even more hesitant when thinking about buying a home. It will cause consumer confidence to drop even further, making recovery an almost insurmountable task.

While various measures and credits have provided temporary boosts in the housing market, they have generally been followed by an even deeper decline. Furthermore, reports are surfacing that indicate that there is significant inventories of shadow foreclosure properties that will soon hit the market and further depress prices.

The areas that have been the hardest hit since the beginning of the crash will once again suffer the most when the prices drop to rock bottom for a third time. Analysts do believe that prices will once again rise after hitting rock bottom for a third time, though many consumers are finding that hard to believe, as they’ve heard it all before.

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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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