By: Christina Dove
Although there have some signs of recovery in the housing crisis, the US housing market is still vulnerable to further decline in areas where mortgages are headed toward foreclosure in the next few years. It does not seem like the housing market could get any worse, as prices are at an all time low and people are having trouble getting loans and affording new mortgages. The issues are all rooted in the sub-prime mortgage crisis, where people were talked into following through with loans that they clearly could not afford.
The housing market is a "crazy market" right now and as banks continue to repossess and sell homes, it could get even more interesting. All of the aspects of the economy are intertwined, as more people are unemployed the housing market will take a blow and as more people start to earn more money in their pockets, they will become less hesitant to enter into the housing market.
An additional issue dealing with real estate has to do with the commercial real estate market, more and more companies are struggling to afford their buildings and might have to foreclose. This would add a whole new dimension to the real estate situation in the US as more and more companies and families are unable to afford their homes. We are going to experience another collapse of the commercial real estate market if the economic conditions do not improve soon.