Economic Storm That Has Halted Real Estate Industry
Household debt in US is so high that it has now surpassed 2008 peak. On the other hand, there has been severe shortage of home inventory, and home owners do not seem to sell their homes if we look at the general scenario. So, what is really going on? The current situation is like an economic storm which is forcing the home owners to stick with their homes and sidelining the first-time homebuyers. While the long homeownership may not look very daunting but it has huge impact on the real estate industry in general. The factors which are creating and developing this scenario are as follows. Higher debts The American household debts reached an all-time high of$12.73 trillion according to a report that was released in March. This debt is even higher as compared to the one calculated in 2008; i.e. $12.68 trillion. Nevertheless, a bigger part of this debt is composed of student loans and auto loans. Household debt is the smaller part in this scenario. Another