Bri Sharp, Catherine Gregory, Chris Kennard
Tuesday, May 10, 2011
Demand of Houses Drop Along with their Prices
As the economy gets worse, people tend to save their money rather than spend it. When the economy goes into debt, the demand for high priced items is very low. Since the Lehman collapse, the demand for houses began to drop. In order for something to receive a higher demand upon it then the price must drop. This is what is happening to houses that are on the market. The government has spent their money in the past to help the housing market, however it did not help with the price and demand and money was waisted on this idea. People that receive home loans will never be able to pay off their home. They could have purchased their house when the economy was good, or at least better than it is now, and now since the prices of houses are dropping, their house could be doing the same. The debt that people are in and the low demand of houses on the market are bad for the economy and bad for businesses, such as real estate, trying to make money. However, the people that have saved most of their money can find a great deal on a home. They can buy a house for a price a lot cheaper then it originally was. The demand of people buying houses maybe low but it is beneficial to some individuals and family that have saved their money and are looking for a nice, cheap house to buy.