Housing slump threatens American recovery

Housing slump threatens American recovery

by 0 comments

American economists predict that the road to recovery will be a bumpy as house prices continue to fall.

Mark Zandi of Moody’s Economy.com said the Obama administration’s economic successes will all be for nothing if the housing free-fall continues.

Rising joblessness is said to be having an impact on the demand for housing.

According to The Australian Financial Review, unemployment in the US, which now stands at 9.4 per cent, is expected to peak at more than 10 per cent next year.

The increasing level of unemployment is taking its toll on consumer confidence which is in turn forcing potential home buyers to think twice before buying a property.

Moreover, mortgage credit is still hard to come by. Fannie Mae and Freddie Mac, the nation’s two main federally backed mortgage agencies, have tightened their new-loan standards and a federal survey of loan officers suggest that the banks will remain stringent on credit for some time.

American economists predict that the road to recovery will be a bumpy as house prices continue to fall.

Mark Zandi of Moody’s Economy.com said the Obama administration’s economic successes will all be for nothing if the housing free-fall continues.

Rising joblessness is said to be having an impact on the demand for housing.

According to The Australian Financial Review, unemployment in the US, which now stands at 9.4 per cent, is expected to peak at more than 10 per cent next year.

The increasing level of unemployment is taking its toll on consumer confidence which is in turn forcing potential home buyers to think twice before buying a property.

Moreover, mortgage credit is still hard to come by. Fannie Mae and Freddie Mac, the nation’s two main federally backed mortgage agencies, have tightened their new-loan standards and a federal survey of loan officers suggest that the banks will remain stringent on credit for some time.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?