How will the downturn in the real estate market affect the US economy in the next five years?

Answer 1

Does recession ring a bell. This downturn affect jobs not only in mortgages, but in construction. Watch the holiday retail numbers for a clue. When you have to devote a large percentage of your money to keeping your home, or finding a place to live, add the increase in heating and gasoline costs, there is no money left for spending, that will show up in the holiday spending. Feds are in a bad place decrease interest to try to help with the credit crunch, or raise them to prevent inflation. Myself would worry more about inflation, or more likely what happened in the I believe 80's stagflation. Either way we are in for a rough couple of years/

Answer 2

at first there is not any national actual belongings marketplace; it truly is all interior of reach and the climate that stress it are in line with laocl grant and demand subjects. Even as we communicate there are factors of the USA of a that are doing good. definite, once you combine the interior of reach numbers there is an avg. for a countrywide selection yet that has little to no result on what your interior of reach marketplace is doing. the main substantial concern is that persons do no longer comprehend the thank you to administration their very own finaces and act like lemmings to a large degree. think of back to the dot com bubble. human beings have been blindly following the team interior the inventory marketplace and have been paying for through fact all and sundry else replaced into paying for. while the final "greater beneficial fool" jumped into the marketplace it crashed and the marketplace fell. comparable element as we communicate in actual belongings; people who had NO employer experience have been paying for "investment belongings" wit no money down, adjustable fee morgages, and theory they'd make a killing by using merchandising to the subsequent "greater beneficial fool". So it somewhat isn't a "actual belongings" concern. it somewhat is a financial administration concern. i think of that over the subsequent 5 years we can see a growth interior the inventory marketplace through fact the toddler boomers provide up fiddling with actual belongings and start up putting their retiremnt money back interior the inventory marketplace and attempting to rebuild for their retirement returned. the subject is going to be in 2012 by using 2016; while a extensive % of toddler boomers hit age 70 and a million/2 and by using regulation are compelled to start taking madatory withdrawals from their 401K debts. there is no longer adequate youthful human beings investment their debts to yet each and all of the mutual money and shares that the toddler boomers would be merchandising. greater sellers then shoppers continually advise that fees fall. what is going to toddler boomers do if the marketplace starts off to fall while they are 70? Will they "make investments for the long term" or will they sell each thing and positioned it into gold or silver? i do no longer comprehend yet I plan on paying for actual belongings NOW and merchandising all my shares previously 2012.