What happened to the housing recovery?
Despite hopes that the market would begin showing signs of life this spring, the latest housing data suggests otherwise. Instead, the sector remains stubbornly moribund—trapped in a spiral of declining prices, increasing mortgage rates, unemployment and several unforeseen factors.
And with many experts believing that a real estate rebound is critical for the overall economy to recover, patience with housing is beginning to wear thin.
“We’re dealing with a problem that probably took us eight years to get into and expecting to get out of it in eight minutes, and it’s just not going to happen,” says Rick Sharga, analyst for RealtyTrac, which follows real estate trends. “The frustration might be more self-induced or self-inflicted than necessarily something the real world would create.”
Experts cite various reasons for the continuing problems with housing and say it’s unrealistic to expect a full recovery anytime soon.
Economists have all been pretty consistent in that they expect the housing market to bottom out at the end of this year or the beginning of next year,” Sharga adds. “It’s not going to be a rapid recovery.”
Experts break housing’s problems into five key areas.
2) Credit Availability
3) Price Pressures
5) Short Sales