US Real Estate and Recession

Posted on December 29, 2010. Filed under: Ideas & Information, Real Estate News & Updates, US Housing News |

The impact of recession has already resulted in higher unemployment numbers in the building industries, which has slowed to less than 10% of what it was during the real estate boom, and does not account for more than one million estimated undocumented workers in the U.S. working for contractors building homes and other properties under the table, who are now out of work. There is no doubt that the real estate markets are in a full blown recession. In most real estate markets property is depreciating at 2%+ per month. Troubled by the mortgage melt down and falling home prices, the U.S. housing market has fallen into a national real estate recession, according to the latest analysis by Housing Predictor.

The crisis is unprecedented in U.S. history and could cause the U.S. economy to suffer worse national economic turmoil than caused by the Great Depression in the 1930’s. New laws were enacted to help avert a repeat of the Depression and only further interest rate cuts and infusing more money into the economy may help at this point.

Furthermore, agents need to buckle down and be financially, mentally and emotionally prepared for real estate markets (and the nation’s overall economy) to be in a recessive state for some time to come. The over-whelming majority of local real estate markets are either in housing recessions or battling to keep their economies strong enough to keep from declining. Housing Predictor forecasts more than 250 local housing markets and at least 221 are in the woes of recession.

We now face a new economic era, a period without precedent. Will we have a mild recession — or a deep one? Will the recession be short-lived — or something that will continue for years?

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