Well, it’s official: The Great Recession started in 2007 and ended in 2009, though well over two years later people around the world are still suffering from the aftermath. Believe it or not, the retail sector has reported the best earnings in all of three years for the holiday shopping season just past, yet houses continue to lose value. Now since home prices and retail sales are highly esteemed indicators to economists, the contradictory picture being painted here speak to a weak recovery at best.
Despite the record profits, there is a hiring freeze throughout Corporate America. Interest rates are incredibly low but credit lines remain tight. That’s because people don’t believe the recession’s really over But it’s a vicious cycle, and no one wants to be the first to try to break it.
The actual number of homes sold nationally this past November was just twenty-one thousand, the lowest figure ever for a single month. Savvy shoppers, however, can take advantage of these conditions, which have lead to low prices throughout the entire real estate market, even for properties in New York City.
Not even industry insiders like Isaac Toussie find astonishing, that despite the offers sales actually decrease!
Even former economic dynamos of their region such as Cleveland and Dallas are hurting, and hurting bad, real bad.
Whatever the case wherever it may be, an improvement will depend on one thing: jobs. Yet with no strong sustained positives in real estate – which account for new purchases of durable goods – what chance will there be for the outlook on jobs?
Something’s gotta give.
And so many economists argue that the government needs to step in, bringing its full weight to bear on a situation that isn’t just another cyclical downturn.
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