The Real Estate Market in the U.S. Today
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The real estate market in the U.S. today is in flux and is much affected by the larger economic realities such as the recession, the possibility of a recovery, unemployment figures, and loan rates. Housing is seen as a problem, with a higher people today unable to buy a home than was true in the past. Many parents are faced with the fact that their children will not be able to afford to do anything but rent for the rest of their lives unless the housing situation is addressed and solutions are proposed. The housing situation is gauged in several ways, including average prices in different areas, new housing starts, and the number of units that change hands in a given period of time. The housing situation varies greatly from one region to another, with California being seen as having particular problems while many mid-Western areas have relatively fluid housing markets today. One puzzling aspect of the present market is that though mortgage rates have fallen, buyers are still not purchasing. What was a seller's market for many years has soured, and houses are on the market longer and usually sell for less than anticipated. There is still a housing shortage, and there is no one to buy those houses that are available. Home purchasers who are interested in buying have several questions they have to have answered before they complete the deal. Buying a house is a process involving a number of specific steps, some of which may be optional but all of which have to be consid
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thiest segment of the San Diego market, which is houses priced between $150,000 and $200,000, hard bargaining and price cutting are common, and prices for more expensive houses are even softer. The housing market across the country is being affected by such changes as the base closings instituted by Congress and the Pentagon, and worry about the effects on the local economy are reducing buyer interest in these areas for the most part. There are isolated housing booms in different parts of the country (Razzi, 1993, p. 97).
Smith (1993) is more optimistic, seeing that at this time a fortunate combination of factors may propel first time buyers into the market at a record rate, factors such as rock bottom interest rates and a trough in home prices joined with widespread optimism about the new administration and a surge in consumer confidence. Mortgage rates were 8.98 percent for a 30 year fixed loan in 1992 and have plummeted to 7.57 percent in 1993. Prices have also fallen precipitously in many places. This makes housing more affordable than it has been since 1974, according to an index compiled by the National Association of Realtors that measures how much income a buyer needs to buy the median priced home at current mortgage
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Approximate Word count = 1578
Approximate Pages = 6 (250 words per page)
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