If there is a risk that one of the family members will lose his or her job, that will add risk to the purchase decision. The riskier the purchase decision, the lower the price will need to be in order to compensate for that. Another factor here is the expected change in housing prices or interest rates. Buyers are inclined to enter the market if they believe that the cost of home ownership will be higher next year, but they may delay purchases if they believe that costs will be lower next year.
With new home sales last summer, the dip could be in part due to worries about a double-dip recession. The summer was characterized by an inane fight over the debt ceiling, something that shattered confidence of many in the political system, and some of the key actors within that system. A fractured political system is one that is less likely to spur economic growth, so there was cause for pessimism, and that pessimism could well have driven people out of the housing market. The threat of further rounds of layoffs in corporate America, and the realization that interest rates are not going to increase any time soon could easily suppress demand.
Other Potential Factors.
In addition, if the conditions of economic recovery are tenuous but housing prices increase significantly...
Economics Studying in United States have always felt the need to challenge myself and learn from the situations that I have overcome in my life. These challenges and obstacles have provided me the opportunity to be more independent and responsible. I always hade passion for English and knew that learning it would always be a challenge for me. Therefore, just two-year ago, I decided to take up this challenge and went
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