Discussion Topics Chapter 26 and Chapter 27 During the past seven weeks or so, I have expected you to follow the US Economy and the role that the US real estate market has played in the growth or decline of the economy. I have had the expectation that you will have developed a fuller understanding of the real estate market and the role it plays as a cornerstone US industry. The marketplace experienced high level of volatility (2008-2010) not seen in more than 50 years. It is estimated that we have experienced private home ownership rates drop to levels not seen since WWII and that there is a high probability that 10% of families who lost homes during the mortgage meltdown will never own a home again. Most recently, there have been a number of published stories in print media and on-line that the cost of housing and availability is, once again, becoming problematic. I have included a link to one such article. https://www.yahoo.com/news/america-apos-housing-crisis-spreading-120132790.html. (At this time, you will find this is still an active link.) Simply put, after reviewing the yahoo link, is the US real estate market still one of the primary drivers in the US economy and what are your thoughts as you have observed the market for the past 5 or so years particularly as we have seen a huge upsurge in the numbers of Americans back to work? More importantly, what is your considered opinion as you look into the future of the housing market for the next couple of years (again please consider the comments written in the included link)?

Real Estate Economy

It is true that the United States real estate market is still considered as the key driver in the nation’s economy since residential real estate provides housing for various families and also recognized as the most significant source of wealth and savings for a substantial number of families. The commercial real estate that comprises of residential buildings strategically creates jobs and places for trade, offices, and manufacturing. Therefore, real estate trade and investment strategically provide a basis of income to a more significant number of the citizens (Brueggeman & Fisher, 2011). In a personal opinion and as observed in the marketing environment, the United States real estate marketplace has since been associated with more significant improvements in prices, the total number of connections being made and mortgage originations. This is due to the economic revival strategy that was completed in 2017 that also included the general expansionary monetary rule of the Federal Reserve.

The future of the housing market for the next few years is still at stake as challenges always emerge including the higher prices of raw materials, financing, and labor thus making construction and real estate business expensive. The only strategic method of manufacturing the costs to fall is through overbuilding; however, there is still a substantial backlog thus making it difficult to even fulfill the current existing demand (Brueggeman & Fisher, 2011). It is also documented that as the delays continue to escalate, the general costs also increase and the challenge of meeting the wants typically gets worse. Therefore, these are challenges that still affect the real estate business hence proper remedies ought to be initiated and implemented if the business is to grow in the coming years.

Reference

Brueggeman, W. B., & Fisher, J. D. (2011). Real estate finance and investments (pp. 5-6). New York, NY: McGraw-Hill Irwin.