금융시장
Review of Possibility of Another slowdown in the Housing Market
2010-10-08SOHN, Eun-Kyung
목차
요약
There is a possibility of another slowdown in the Housing Market resulting from unfavorable job market
US housing market has been stabilized with a recovery in housing transactions and prices since the middle of 2009. However, there is a possibility of double dip recession in the housing market with possible economic recovery slowdown and unfavorable job market
End of tax benefits and lingering unfavorable factors in the housing market have raised a possibility of another recession in the market
Since the beginning of last year, US government has provided tax benefits upon purchase of a house as part of a stimulus to the hocusing market. However, as tax benefits came to an end this April, housing related indexes have dropped, raising a possibility of double dip recession in the housing market
Despite record low mortgage rates, the number of newly built houses remains the lowest and mortgage refinancing demands and mortgage demands are down. This is attributable to future uncertainty over the housing market, limited financing abilities of households and lower consumer sentiment
In particular, high unemployment rates and an increase in individual bankruptcy have an unfavorable impact on the housing market such as a rise in mortgage default rates and the number of houses seized. Accordingly, there is a possibility of another slowdown in the housing market
There a limited possibility of a rapid slowdown in the housing market based on continued low-interest rates, low housing prices and government stimulus
30-year fixed mortgage rate remains record-low, 4.49% and housing prices have fallen 30% from the market's peak in 2006. Accordingly, there is still a possibility of recovery in housing purchasing power in the future. A rapid slowdown in the housing market is less likely
Considering how much prices drop and how long such a drop lasts upon any collapse of housing bubble, the current housing prices in the US are viewed the lowest and another drop in the future is less likely
In addition, considering that the financial crisis started in the US housing market, as the government is expected to provide additional policy support if uncertainty in the housing market continues, a rapid slowdown in the housing market is less likely
US housing market has been stabilized with a recovery in housing transactions and prices since the middle of 2009. However, there is a possibility of double dip recession in the housing market with possible economic recovery slowdown and unfavorable job market
End of tax benefits and lingering unfavorable factors in the housing market have raised a possibility of another recession in the market
Since the beginning of last year, US government has provided tax benefits upon purchase of a house as part of a stimulus to the hocusing market. However, as tax benefits came to an end this April, housing related indexes have dropped, raising a possibility of double dip recession in the housing market
Despite record low mortgage rates, the number of newly built houses remains the lowest and mortgage refinancing demands and mortgage demands are down. This is attributable to future uncertainty over the housing market, limited financing abilities of households and lower consumer sentiment
In particular, high unemployment rates and an increase in individual bankruptcy have an unfavorable impact on the housing market such as a rise in mortgage default rates and the number of houses seized. Accordingly, there is a possibility of another slowdown in the housing market
There a limited possibility of a rapid slowdown in the housing market based on continued low-interest rates, low housing prices and government stimulus
30-year fixed mortgage rate remains record-low, 4.49% and housing prices have fallen 30% from the market's peak in 2006. Accordingly, there is still a possibility of recovery in housing purchasing power in the future. A rapid slowdown in the housing market is less likely
Considering how much prices drop and how long such a drop lasts upon any collapse of housing bubble, the current housing prices in the US are viewed the lowest and another drop in the future is less likely
In addition, considering that the financial crisis started in the US housing market, as the government is expected to provide additional policy support if uncertainty in the housing market continues, a rapid slowdown in the housing market is less likely