Housing Recovery? Perhaps Not

CNNMoney tells MHProNews some industry experts forecast the housing recovery may not last. While home prices have risen eight percent, investors are driving the surge, taking advantage of low interest rates and depressed home prices. When rates and home prices rise, the recovery may stall, especially as investors receive a low rate of return. In addition, a sustained housing market recovery is dependent on job growth. The 88,000 jobs added in March, the weakest jobs growth since June, is not sufficient to expand the demand for homes. Also, the $85 billion in government sequestration spending cuts will hit its peak this summer, according to Mark Zandi, the chief economist for Moody’s Analytics. He says the cuts could shave one percent from the Gross Domestic Product this year, which in turn could lead to job and income losses.

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Housing Recovery? Perhaps Not

2 thoughts on “Housing Recovery? Perhaps Not”

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2 thoughts on “Housing Recovery? Perhaps Not”

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