When will the housing market recover?

Olivia Emisar By Olivia Emisar, 24th Aug 2010 | Follow this author | RSS Feed | Short URL http://nut.bz/184c5o59/
Posted in Wikinut>Money>Property

The housing bubble is over and home prices are at the lowest they have been in a decade. Why are consumers so reluctant to purchase that dream home at a fraction of its original cost?

The disconnect between corporations and the consumer

The housing market is going to take far longer to recover than what the so-called experts think. It does not matter how low the prices are or how great of an investment a bunch of houses at bargain prices look on paper. The reasons for the housing slump and extremely slow recovery are obvious to anyone who lives in Main Street but apparently, the pundits and financiers struggle with the understanding of the most basic facts of home ownership.

The financial side that all experts should be able to understand, and yet fail miserably, is that banks are sitting on billions of dollars for political and financial reasons; the money is not reaching the consumer, and when it finally does, consumers are still being charged a series of unnecessary fees.

The emotional toll

Main Street has no faith in the banking system or the economy and has seen Wall Street dine on champagne and caviar while receiving trillions of tax payer’s dollars to keep them from going under on the bad decisions they made.

Main Street dwellers are disgusted, angry and resentful, which makes them distrustful of engaging in legal contracts with those they perceive as dishonest.

The reality of Main Street neighborhoods

The next aspect of finances has to do with the instability of the job market and consumers’ painful experience in their neighborhoods peppered with empty and dilapidated homes. Unfinished construction in many neighborhoods from bankrupt developers is a bitter reminder that the economy is not rebounding. The fact that the houses are empty is only half of the issues, the other half is the emotional toll these economic losses have taken on their collective psyche.

No one on Main Street is willing to undertake a mortgage without feeling confident in the longevity of their own employment situation. The current state of the economy and the feeling of having been swindled by corporations has left a bitter taste in people’s mouth that will take a long time to forget.

The unemployment factor

For those pundits who are still spouting a housing recovery, they would do well to realize that even though some people still have jobs, they have had to give up benefits, personal time and parts of their paychecks just to have the honor of having a job. While Main Street struggles, home ownership will not make a comeback any time soon.

Main Street needs to see the employment rate drop below 6% nation-wide and know that they are in control of their own lives. Investment requires confidence and trust that is tangible. So far, Main Street has not seen any of those factors in their cul-de-sacs.

Trust

Finally, the experts would do well to realize that for most homeowners, owning a home is an emotionally experience that connects families to communities. Main Street communities need to know that they won’t be uprooted yet again.

Tags

Banks, Confidence, Consumer, Finances, Home Owners, Housing, Jobs, Loans, Main Street, Market, Money, Mortgages, Security, Unemployment, Wall Street

Meet the author

author avatar Olivia Emisar
Writer (obviously), currently working and publishing articles online. My passion is creative writing and novels are always on the works.

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Comments

author avatar Kirsten H
24th Aug 2010 (#)

Great info!

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author avatar Olivia Emisar
24th Aug 2010 (#)

Thank you K!
PEACE-Olivia

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