by John Gittelsohn and Prashant Gopal is an evaluation of the U.S housing market in the recent times. This follows all-time decline in house prices, with significant observed scenario of improved house demands in the market. The…
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The central issue in the article is the state of the U.S housing market this year, prior to past trends and expected outcomes in future. The market’s collapse hits a bottom position in the 20th and 21st centuries, but different stakeholders show their optimism towards recovery and sustainability of favorable business in the market. Confidence of consumers, home seizure trends, supply of foreclosure and market healing processes in 2012 (Keith & Short 89) are central to the interest of the article. Different views are aired but one thing is for sure; the housing market’s performance is poor, with unpromising months to come due to recovery allowance period.
The housing market’s recent performance is the issue at hand. Past recorded prices and house demands are not comparable to the current situation. The tortoise speed increase in demand is shedding some light to improved sales, but the optimal functionality of the market is far from being realized. The author’s point of view is not different from those of contributing stakeholders, evident that the housing market is on the verge of collapsing if not already collapsed. However, the author is one of the optimistic stakeholders, arguing that the market is taking a stable aspect and that its recovery is or will be sustainable in the next few months. The author’s opinion is substantiated by drawing evidence from numerous experts in housing matters.
The housing market in U.S is actually bottoming. Hitting an all-time low since 1930s means that the trough has already been realized. This means that the article is right, and this is because the claims of the article are actually backed by evidence from various housing variables in the market. The claims presented by various parties including the author are right. The performance of the market is poor, with low response to recovery strategies (Olivier 150). Data has also been employed to reinforce the claims. All interviewees
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It is also noted that poor housing is closely related to high rates of criminal activities. A slum area has the potential to breed crimes and gangs. Shattered nerves and frayed tempers are the inevitable accompaniments of constant friction and quarreling which are inherent in poor housing conditions.
In mean time, speculators find their way in the market believing of making profits through short-term buying and selling. This drives to an increase in demand but at some point, demand decreases or stagnates with a subsequent increase in supply resulting to a sharp drop in prices (Baker, 2008).
In fact, according to the Commission for Rural Communities (CRC), the cost of a house in rural England surpasses the income of most medium- and low-income earners by far, so they can hardly afford houses in the rural areas. This shortage of housing has brought fears that some areas are preserves of the rich.
U.S. housing price
The financial crisis of the United States happened at the backdrop of the US mortgage housing bubble.
The homeownership drastically declined for the people belonging to the mainstream workforce. A reduction in the incomes of the individuals and an increase in the rate of poverty were noticed in the country.
As supply increase due to more suppliers increasing their output the market supply curve shift downwards meaning that suppliers are willing to supply their products at a lower price.
We analyze the demand of houses which is depicted by the number of households in each region, the growth in the demand which is depicted by the change in the number of households over the years in each region and the market equilibrium price depicted by the average rent rates over the years in each region.
But such was not the situation a few years back when the US housing market was at a BOOM.Looking back at the period of boom for the housing market in US we see that the interest rates were low according to the policies of Alan Greenspan, chairman Federal Reserve.
Anti-social behavior can be of many things. We mainly associate this term with noisy neighbors, or people who use abusive and threatening language, or those who run their premises in illegal activities, such as prostitution. A menace to society, anti-social behavior in society is increasing at an alarming rate.
institutions have warped or been bought out and government administration in the rich nations had to approach with release packages to bail out their fiscal systems. A fall down of the US sub-major mortgage market and the turnaround of the housing boom in further developed
nt in the sector as it is meant to ensure increased income collection which is subject to the comfort of tenants among other stakeholders (Lister, Perry and Thornley, 2007). Riverslake Housing Association is one of the leading property management agencies in the country.
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