There are more markets than the stock and bonds ones and they are pretty important too. Housing markets are a key indicator of the economy’s health, so obviously you can’t pass it up.

• Housing markets take longer to rebound after recessions even if other markets recover quickly.
• Personal housing decisions don’t often follow the fluctuations of the housing market, but instead reflect personal and economic factors – the majority of people does not constantly sell or buy housing every time the price changes.
• A significant upswing in the economy may reverse this downward trend, but it will most likely have little effect unless attitudes towards home ownership change significantly.

Facts & Figures

• Prices have been declining for three years and are projected to fall 41% from 2006 through 2010.
• Current market prices are encouraging people to sell their homes while not stimulating new demand for housing: a large supply with little demand.
• Following the 1990-91 U.S. recession, housing prices didn’t move upwards till roughly six years later.

Tags: decline, housing, prices, real estate, recession