The nation has been eagerly watching for signs of economic recovery ever since the beginning of the current financial downslide. Over the past few months there have been rumblings of a possible economic recovery but economists are stating now that we are already experiencing the beginning of a second drop of home prices across the country.
Analysts from Capital Economics are predicting that housing prices across the nation will continue to lose ground over the next 12 months. While it is possible that levels could tread water sufficiently to not decrease much, they claim it is also possible that prices could drop as much as an additional 20% in a worst case scenario. Paul Dales, from Capital Economics said, “It is becoming clear that the housing market cannot stand on its own two feet,” and that it is likely that housing prices will see a new low by next fall.
A big part of the problem with the market is that the economy has just not recovered enough to make up for the months upon months of hardship and delinquency that many homeowners are finding themselves in. While there has been an increase in jobs in many areas of the country, home owners are still struggling to catch up with the debts they have accrued over months of reduced employment or unemployment.
With so many homes poised on the verge of foreclosure and so many Americans still struggling to make ends meet, it is easy to see why it is so hard for the economy to recover. But with home prices continuing to slide, does it make sense to hope that the continued price reduction could lead to a rebound in home ownership numbers?
Sliding prices could, in fact, result in more homes being bought in the near future if employment picks up enough to support an increase in home buying and if prices decrease enough for homes to become affordable for the buyers who still have viable credit. No matter what the predictions though, only time will tell if we will see a recovery start within the next year or not. We can only hope that home owners who are struggling to hold on now can maintain that grip over the next few months.
(ArticlesBase SC #3628887)
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