There are those who say the housing crisis is what's holding America back from economic recovery. To this scribe the sub-prime fiasco may have started the ball rolling back in 2007, but what's holding us back today is unemployment and employment uncertainty.........and a nation that's pre-occupied with paying down debts rather than spending.
Seems to me everything is a big circle. Everything is inter-connected. Economists are now saying it will take a stroke of incredible good luck to get the unemployment below 8% by 2012. From what I've read, a majority of economists believe it will be at least 2015 before unemployment falls to the historic 5% level.
The US unemployment rate stands now at 9.5% and is expected to rise to a seasonally adjusted 10% by March, 2011.
As long as there's high unemployment and job uncertainty it seems only natural that Americans will curtail spending and place their concentration on personal debt reduction. For US corporations lack of spending is causing bankruptcies and layoffs.
State and municipal shortfalls caused by a decline in tax revenue will severely harm the national recovery. US recovery is also dependent on the rest of the world resolving their economic woes. We do live in a global village after-all. I'm sure you can see what I mean about a "BIG CIRCLE."
You can bet President Obama has a lot on his mind as we head into November mid-term elections. With declining popularity the democrats have the most to lose. Trillions of dollars in debt and the potential for a double dip recession in some states will leave voters weighing their political options carefully.
I'll leave it to you to decide how this will impact the national real estate industry in the year/years to come. It may be hard to believe, but there are thousands of homes for sale in Detroit right now for under $10,000.......and you wouldn't want any of them as a gift.
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