Is the US Housing Market on the Verge of Collapse?
Is the great American dream over?
Is the housing market on the verge of collapse?
These very questions are now being echoed around the nation by financial experts, authorities in Government and the common person alike.
U.S. Federal Reserve Chairman Ben Bernanke recently attended an annual conference of global central bankers in Wyoming. At this meeting of financial minds, he stated that the U.S. economy is not recovering as quickly as it had been expected to.
The Government originally predicted that for the months covering April to June the economy would grow by around 2.4 percent. In reality it only managed a meager 1.6 percent which was slightly better than the dire predictions of some financial economists.
Bernanke went on to say that the Federal Reserve is ever vigilant of the economic situation and has always been prepared to step in if needed. Further interest rate reductions are likely to be on the agenda, as they have been used in the past to try to help spur economic growth.
In these troubled economic times that have enveloped the nation, there is seemingly little good news coming out for the public to take any form of comfort from.
Jobs are still on the decline with the current unemployment rate at 9.6 percent and rising. Companies are reacting to the constant negative news and slow down in sales turnover by not hiring new workers and shedding those they can.
New home construction has slowed even more with July’s report containing the lowest number of new home applications to date.
Home prices are steadily dropping and trying to find some stable ground since the artificial housing bubble burst like an overfilled water balloon. Credit card usage and loans are down to all time lows following the publics curb on spending.
Repossessions and foreclosures are hitting all time highs in unprecedented levels as many Americans struggle to pay for homes.
Until housing prices hit sustainable levels that the normal working American family can afford, then this downward spiral and steady collapse of the overall housing market will continue.
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