Real Estate Market Still a Mess

May 27, 2011 - PRLog -- The housing bubble did burst and did push the US economy to the brink of depression. Four years later the real estate segment is still reeling under a lot of stress and falling prices is just adding to the woes of home owners in America.

In the Standard and Poor’s Case Shiller Index it has been reported that 19 out of 20 housing markets experienced a drop of an average 1% per month and the price index has steadily been falling for the last six months. In fact 4 out of 20 markets fell to their lowest average prices in the last eleven years. The housing market is coming off of its worst year of existing home sales in the last decade, and the worst in 50 years for new home sales.

All these figures prove the dismal state of affairs in the US real estate market. Increasing unemployment and tighter lending standards have further dampened all hopes of a recovery. Lack of stability in the market is discouraging people from buying property. Falling prices do not paint a rosy picture to the prospective home buyer. All this has further added to the pressure on the Feds to print more currency.

Deficit financing would be the only way in lieu of the current scenario in which more banks might need a bailout. In the last four years property owners have lost as much as $6.3 trillion in equity which is a massive blow to the entire population and the economy. The current trend will prevail unless the government loosens lending rates and employment picks up. These two factors will decide the fate of the real estate sector and positive development here can help raise hopes for this weak link of the American economy which is the housing sector.

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ITM Trading is a fifteen year-old precious metals firm specializing in physical gold, silver and platinum products used as a safe-haven as well as growth. We can be reached at 1-888-OWN-GOLD or http://www.itmtrading.com