House And Home: The Rise and Fall of the Housing MarketBy Phillip Williams on October 7, 2010, 6:55 am Posted in Finance News
There was a time if you were in the Real Estate business, you were on top of the world financially. Making money was easy. The Real Estate market was booming; people were making between twenty and one hundred thousand for every home they sold. Prices were up and it was a seller’s market. Nothing was on the buyer’s side; interest rates were up and the buyer’s were willing to pay the higher rates to buy the home of their dreams.
The housing market was sitting on jagged rocks after 2001 and it was only a matter of time before it came tumbling down. The United States was living in this bubble of denial; spending more money and creating more debt. The housing decline really began when the unemployment rate rose. Americans began losing their jobs and having to take lower paying jobs just to make ends meet. The mortgage is the highest bill anyone has on average; so the solution would be to let their house go into foreclosure. So began the problem. As foreclosure rates rose, the housing market sank and the American dream faded.
What Is The Prediction For The Future
With unemployment rates still on the rise, it may be a while before the market is stable. The future is shaky and some say we are only half way through the housing market problems. There are predictions that we will not see the bottom of this issue until 2012. If you are looking at the predictions, August of the 2012 is the moment we will hit rock bottom. No one knows what will happen when the bottom is reached, but the United States will persevere as always.