Categorized | Residential

United States Residential Real Estate Market Struggles Despite Revival Efforts

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For the last three years, the United States government has implemented a wide variety of strategies aimed at resurrecting a struggling housing market. However, each strategy has failed to revitalize the market as intended, and the overall outlook on the property market continues to look dim.

New residential construction is down, and sales are hitting record lows. In addition, more homes appear to be headed for foreclosure. With more foreclosures flooding the market, it is likely that prices will continue to decline with no end in sight.

The government’s latest action to artificially keep mortgage loan rates at historically low levels has done little with respect to spurring housing sales. Stringent qualification standards imposed by banks on those looking to take out a mortgage loan have all but limited any potential positive impact that the lower mortgage rates could have had.

Many believe that the struggling housing market is also playing a significant role on the overall economy. Analysts question, however, whether it is the housing market that is negatively impacting the economy, or the economy taking its toll on the housing market. With the job market also facing its struggles, it has become unclear as to which market is impacting the other.

It is clear that the government’s policies have failed to work as intended, and the housing market faces a long road ahead. However, many analysts have indicated that they are not sure what the government could have done differently to improve the situation. With the job market, the looming European debt crisis, and other factors coming into play, the federal government has essentially been playing against a loaded hand.

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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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