Home Builders Struggle To Rebound Summary
The Market and Home Builders
In the article, “Home Builders Struggle to Rebound” by Chris Kirkham. The author explains how hard it’s been for home builders during the Great Recession that occurred during 2007 to 2009 to rebuild their companies and obtain a stable job. The companies are still trying to build themselves up in business, and it hasn’t been the same ever since the recession. Also it has been difficult for young buyers to purchase their own home with the market not being stable.
First off, the U.S. unemployment is in the lowest level in a decade. Basically some of these unemployment people are home builders, real estate agents, and etc. The single family homes under construction remains at recessionary levels. The author is explaining that the houses dropped 18.7 percent in November with an annual rate of 1.090 million. The construction work went down to 4.7 percent and in rate of 1.201 million.
The construction of new homes remain suffering. Causing not to achieve an economic balance. The people think that the market has recovered, but in the supply perspective the market hasn’t recovered. Basically there are a lot …show more content…
of homes without families living in them. People also don’t try to ask for a loan because they think the bank is not going to approve them. Also, home buyer especially young ones think they don’t qualify. Leaving empty houses unoccupied and leaving the demand for homes at a low level. Seventy-two percent of people who rent apartments say they want to own their home, but they don’t try to apply for loans to try and purchase their own home.
Home builders have also faced a series of constraints that have affected the pace of production because restrictions after the crisis has made it difficult for small operating companies to access capital. This means that they want to make homes less expensive and sale them for less so first time home buyers can afford living in them. The researchers say that first time home buyers don’t really ask for much since it's their first home. Restraining home builders in building nice homes and integrating pools, making less job for pools companies to grow.
Finally, during the Great Recession, the U.S.
experienced and economic downturn from 2007 to 2009. The crash of the real estate market caused a decrease in demand for homes, and creating an oversupply of properties. This also caused for properties prices to go down. In the real estate market the law of supply and demand is important. Because each buying transaction involves a buyer and a seller. In the market a buyer places an offer for a home and the seller may accept or reject the offer. The law of supply and demand determines the balance price of a property. For example; when there is a high demand for homes in a specific city or state the prices of houses tend to rise if supply of properties are of good quality. But when there is no demand for houses due to poor economy and the oversupply of homes are available the prices go
down.
In the article, “Home Builders Struggle to Rebound” by Chris Kirkham. The author explains how hard it’s been for home builders during the Great Recession that occurred during 2007 to 2009 to rebuild their companies and obtain a stable job. The companies are still trying to build themselves up in business, and it hasn’t been the same ever since the recession. Also it has been difficult for young buyers to purchase their own home with the market not being stable.
First off, the U.S. unemployment is in the lowest level in a decade. Basically some of these unemployment people are home builders, real estate agents, and etc. The single family homes under construction remains at recessionary levels. The author is explaining that the houses dropped 18.7 percent in November with an annual rate of 1.090 million. The construction work went down to 4.7 percent and in rate of 1.201 million.
The construction of new homes remain suffering. Causing not to achieve an economic balance. The people think that the market has recovered, but in the supply perspective the market hasn’t recovered. Basically there are a lot …show more content…
of homes without families living in them. People also don’t try to ask for a loan because they think the bank is not going to approve them. Also, home buyer especially young ones think they don’t qualify. Leaving empty houses unoccupied and leaving the demand for homes at a low level. Seventy-two percent of people who rent apartments say they want to own their home, but they don’t try to apply for loans to try and purchase their own home.
Home builders have also faced a series of constraints that have affected the pace of production because restrictions after the crisis has made it difficult for small operating companies to access capital. This means that they want to make homes less expensive and sale them for less so first time home buyers can afford living in them. The researchers say that first time home buyers don’t really ask for much since it's their first home. Restraining home builders in building nice homes and integrating pools, making less job for pools companies to grow.
Finally, during the Great Recession, the U.S.
experienced and economic downturn from 2007 to 2009. The crash of the real estate market caused a decrease in demand for homes, and creating an oversupply of properties. This also caused for properties prices to go down. In the real estate market the law of supply and demand is important. Because each buying transaction involves a buyer and a seller. In the market a buyer places an offer for a home and the seller may accept or reject the offer. The law of supply and demand determines the balance price of a property. For example; when there is a high demand for homes in a specific city or state the prices of houses tend to rise if supply of properties are of good quality. But when there is no demand for houses due to poor economy and the oversupply of homes are available the prices go
down.