It's been four years since the U.S. housing market collapsed. We've had recovery but it seems to be breaking down again. From December to January it was reported that home prices fell a whole percentage point. Recently another report has come out saying that in the last month home sales have fallen 9.6. These prices are the lowest they've been in the last 50 years. Last week the gross domestic product expanded, which helped create about 192,000 new jobs in February. Friday's report is expected to show another 185,000 jobs that were produced in March. Even though there's been many new jobs available, the unemployment rate is still at 8.9%. An increase in gas and food prices has also caused issues in the U.S. economy. All the foreclosures lately have lead to markets being full of unsold inventory, which is being sold at lower prices. Those sales are a big reason why home prices are decreasing. The low prices are also cutting into peoples' spending power, making them less confident.
I think if this information is correct, the housing market may collapse again soon and cause even more problems for our economy. At least there are new jobs being created and the gross domestic product has been increasing but if the housing market collapses, I don't see how we are going to be able to keep creating more jobs. People are becoming less confident with their money and homeowners' spending power is going down. If these reports are true, our economy could take a turn for the worse.
http://www.msnbc.msn.com/id/42323042/ns/business-eye_on_the_economy/
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