The Housing Market
Two things are certain: death and taxes. Everything else will come and go. Such is the case with the housing market, which has seen slow but steady growth for a small period of time. However, the U.S. housing market, which was finally starting to look up, is falling once again.
The outlook the American people have on the economy is tied to housing numbers. Now that a decrease has been seen again, with work on houses down by 11 percent over the past two months, people are hesitant about what this means for the nation. The construction starts and permits fell in April, landing at an adjusted annual rate of 523,000 units. Considering that the number was at almost 600,000 units in March, there is cause for concern.
In fact with the news of the housing market possibly hitting another all-time low, the Dow Jones opened to a weak reading this morning, falling 75 points. This information tends to smear the forecast of the economic recovery. Residential construction has dropped a total of 23.9 percent since April of last year and it appears the faith some investors had restored in the housing market may have to wait until 2012. If new houses aren’t being built and construction ceases in certain neighborhoods, Americans may begin to panic that the great fall of 2008 is being followed by the greater fall of 2011.
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