Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Tuesday, September 27, 2011

Housing Market Predictions

In a Fox Business article Thursday January 6, 2011, two top real estate experts gave a forecast of the real estate market for the years to come. One expert predicted not much help will come to the housing market until unemployment is solved. Another believed the market would increase slightly as the economy recovers but nothing too substantial. Many believed the housing market will recover though the time it will take is uncertain. There is a surplus of homes in some areas leading to the possibility of recovery but people have yet to buy them. People are afraid of the dropping prices affecting their purchase of their home. Overall the analysts believe the solution is lower mortgage rates and no foreclosure to help stimulate the housing market. Right now only select portions of the market are doing decent. The rest of the market is being killed by consumer fear and economic downturn. The housing market appears to have more of the same in its future but there is still a light at the end of the tunnel.


Smith said...

Why do you think the Texas real estate market is doing better than most?

Upper School Government and Economics said...

The housing market was completely decimated during the 2008 crash of American economics, houses were going for pennies on the dollar, and realtors were stripped of all economic means. This occurred in almost all 49 other states than Texas because of rampant over pricing of houses. For instance in California a 2000 square foot house can go for a million plus dollars when it is truthfully only worth maybe 200 thousand in Texas. The economy staying stable in Texas is a testament to us not only staying firm in capitalistic doctrine, but also using shrewd business techniques in our everyday lives.

- Ellis C.