| |
Newsroom /
Business
/
Real Estate
/
Housing Wealth Effect Hits U.S. Economy
Housing Wealth Effect Hits U.S. Economy
The erosion of the syndrome known as the "Wealth Effect" is showing that fall out from the housing slump is having a major impact on the U.S.
Destin,
FL,
United States of America
(prbd.net)
01/03/2011
Destin, FL, March 01, 2011 -- The erosion of the syndrome known as the "Wealth Effect" is showing that fall out from the housing slump is having a major impact on the U.S. economy, according to Housing Predictor analysts.
Consumer spending habits slowed for a time after the housing bubble burst as the "Wealth Effect" made people feel like they were losing money as equity in their homes dissipated with falling home values. Three years after the financial crisis consumers have changed their habits, cutting spending on many consumer goods.
A study conducted by Harvard’s Joint Center for Housing Studies showed that the real estate bubble would have only been about half its size had banks and mortgage companies not offered the new breed of mortgages, reducing the number of troubled properties in foreclosure substantially.
The foreclosure crisis has resulted in more than 6-million U.S. foreclosures and is gaining momentum as more homeowners lose the ability to pay mortgages, and other upside down mortgage holders walk away from their homes. Historically housing leads the U.S. economy out of recessions, but the economy has sustained a massive blow from the bankers, who developed new mortgages and sold them to anyone that could sign their name.
Check your housing market forecast, check mortgage rates and real estate news at http://www.housingpredictor.com
Contact:
Mike Colpitts
Editor
HousingPredictor.com
225 Main Street
Destin, FL 32541
850-622-1016
johnstraightline@yahoo.com
http://www.housingpredictor.com
About
Based in India,Straight Line Public Relations draws on almost two decades worth of Public Relations and journalism experience to deliver real-world results for oday's discriminating decision maker. From Small business to Medium size companies and medium size companies,Straight Line Public Relations has earned its stripes by delivering the results businesses demand.
|