Potential of a revived housing market

Posted By: Pete Hill

With the economy pulling out of a recession, many people wonder if they can expect another crash, and if their housing market with be revived. Because the markets had made such a recovery this year, many experts wonder if it is too much too fast. With that being said, the economy is recovering but the housing market still faces challenges, and we are still losing jobs.

“Junk Mortgages” as they are called continue to get worse and still continue to ruin the housing market. Experts thought that when the recession hit, dissecting them and evaluating them would put an end to their harm, but they have not been resolved. These mortgages are a large reason as to why the housing market will not recover on the same level as the rest of the economy, and why so many foreclosures are happening.

The big question many people want to know the answer to is whether their town will be a boomtown again or not. A good climate and a robust economy tend to push housing prices up, but meanwhile an elastic housing supply keeps prices moderate. It is said that some of the “old, cold” cities and towns may never recover the way a warm climate city will recover.

Sources:
http://money.cnn.com/2009/11/25/pf/expert/market_crash.moneymag/index.htm
http://money.cnn.com/2009/11/30/real_estate/mortgage_lessons.fortune/index.htm
http://money.cnn.com/2009/11/25/real_estate/Glaeser_real_estate.moneymag/index.htm