Average Prices Of Homes example essay topic
302 words
Why the housing bubble hasn't burst? The article I found is from the CNN website's money section. The author of this article is Chris Isidore, a CNN / Money senior writer. The main purpose of this article was to make known the possibility of deterioration of the housing market.
The past five years has been swarmed with low mortgage rates, but even with a recession and September 11 the market has seemed to flourish. The market is being questioned after new homes sales declined in November along with the median price of new homes. The interest rates have been considerably low for much longer time than projected and co-director of the Center for Economic Policy Research, Dean Baker projects a rise of one percentage point this year, this should drive down the average price of homes nationwide. Doug Duncan, who is chief economist for the Mortgage Bankers Association, claimed there were only two or three quarters where national average home prices fell, but it never occurred during the entire year. He also referred to 1983 when interest rates jumped 2 percentage points, and the number of homes sold nose dived, but average prices of homes increased regardless. I feel the housing market is the most reliable and steady form of investing Americans have.
Weeks ago I was in Tallahassee looking for a home to buy. My impression from the market in that city was far from what this article presented. Houses in that city rarely stay on the market long, and the homes being sold are done so at outrageous prices. This is just one city out of many throughout the country, but the day that the housing bubble bursts this country will be in for a big downfall.
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