Housing Market Recovery: Time Is Of The Essence. So Are Jobs

Real Estate professionals across America are trying to identify positive evidence, however tiny the shreds may be, that are indicative of a rebound in the suffering housing market. The fact of the matter is that any responsible real estate professional should be dishing out positive information very carefully.

Decreasing mortgage rates and livening employment figures do not necessarily paint a comprehensive picture of the true state of the housing market at the moment. The stone cold facts point to the fact that the worst of the housing market crash will only be experienced some time in 2013, possibly even later.

This is according to James W. Hughes, the dean of the Bloustein School of Planning and Public Policy at Rutgers University. Hughes goes on to state that the first 3 months of 2011 represent a decline on two fronts – decreasing home prices made to appear even more drastic as a result of the misleading sales bump brought about by government tax incentives at the beginning of last year.

Had it not been for the tax breaks for home buyers which caused stable prices and the appearance of a rebound, the aforementioned sales bump would not have occurred. What is happening now is that the momentum of that artificial bump in sales is being lost and figures are once again in decline.

An improvement in employment figures is critical to the rebound of the housing market. The confidence that is associated with the purchase of a home only comes after a period of steady employment, with the confident prospect of that employment continuing well into the future. The link between employment figures and the rebound of the housing market is undeniable. The key aspect here is that of private-sector jobs, because it indicates that employers feel positive enough about a rebounding economy to start employing people again.

Undoubtedly, the other factor that is critical to the recovery of the housing market, is time. The last decline in real estate prices took place in the 1980s. During that period, it take about 6-7 years for the full recovery of home values to occur. It is important that people put aside hopes of an instant or miracle recovery in the real estate market. Current and historical figures simply do not justify that kind of outlook.

Homeowners who are doing their best to weather this housing market storm ought to be prepared to dig their heels in for a fight which will probably take at least a few years to emerge victorious from. There is no doubt that tough times lie ahead for millions of American homeowners. Having said that, the situation is by no means entirely hopeless.

Many people are finding concrete hope and a constructive strategy for coping in the form of loan modification. Loan modifications are not for everyone. They are best suited to people who prefer pursuing a loan modification procedure versus a short sale or foreclosure. We believe that the best help you can get is the kind that is inexpensive, unbiased, and conflict-free.

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