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US Housing |
The United States of America comprises of fifty states which lies between the Atlantic and the Pacific Oceans. It is the world's third largest country with a population of 305 million people. It stretches to about 3.89 million square miles and has the world's largest economy. Washington DC is the capital of US and New York is the largest city in the country. New York ranks the in cost of living in the world making it the most expensive state of America. The housing sector in USA is very well planned and managed by the concerned officials
US Housing and Urban Development
The US housing Act of 1937 recognized the need for an organization that looked after the housing concerns in America. An act was again passed in the year 1965 that created HUD – Housing and Urban Development that introduced community development and a number of housing programs. Its main aim is to provide easy access of homes in the United States so that all the people of America at least have a own house to live in. Its mission is to provide affordable housing in the US. This department undertakes a number of programs to offer low cost housing here. Out of these, the most successful program is the multi family housing service specially dedicated to the elderly people. This has won the hearts of many senior citizens across United States. FHA works hand in hand with the HUD to give home insurance to people who cannot afford the pricey private financial enterprises.
Housing Market in the United States of America
The US housing market was booming ever since its initial days because of the high economy and market value. However, this boom slowly started suffering a set back in May 2005. The booming market which saw great heights of development faced a halt by the year 2006 because the ability of affording a house started diminishing. People who thought of buying their first house resented from the very idea of owning a house. Looking at the statistics of the housing market since the year 2000 it is noticed that the housing market experienced a downfall till 2008. The year 2008 has seen a lot of financial losses, bankruptcy of companies and shutting down of businesses. This has left its scars on the entire world. According to the forecast of 2008, the financial conditions and the economy is set to come on its original path by the end of 2009. Looking at the graph it is quite evident that there is a lot of difference between the previous data and the present data. The chart shows that the market has plunged to record low till 2008 but will not remain the same. The year 2010 seems to be promising for the economy as it is expected to improve completely by then. The market and its serious crash has been in news right from the first day. After the economic loss suffered during the great depression, the present economic crisis has been the worst of its kind in the history of the United States. However, it is now expected that with the passage of time the economy is on its way of recovery, thus bringing a new ray of hope to the US housing market.
US Housing Prices
It has been almost a year since the economic meltdown and the economic crisis that has cast its ugly shadow on almost the entire world. This has affected indeed in a bad way since the history of America's development. The housing prices in America is categorized city by city. The present forecast says that the economy is coming on the right path and in the year 2009 itself there will be a change in the data. However, there are around 9 million house owners who owe more to debt than the actual cost of the house. Statistics show that if this continues, there will be more number of people submerged in debt which, will then be difficult to bring them out of it. According to the historical data, there was a growing trend till 2008. If the economy is not brought to the path of recovery then most house owners will have to face a loss of hard earned money.
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US Housing Bubble
US housing bubble has affected the housing market in America in places such as Florida, Arizona, Michigan, California and Nevada. The housing prices was at its peak in 2005 by the bubble burst in 2008 which is a big threat to the economy. The housing graph which showed indications of development all shattered and fell down in the previous year. Because of the collapse of the sub-prime mortgage industry a number of prospective home loan borrowers were also affected. The US housing bubble has thus burst fully in the previous year itself.
US Housing Inventory
The National Association of Realtors is a housing department in the United States of America that keeps all the statistics of house purchased. According to the data collected so far there are around 4 million houses taken on home loans and. It is estimated that it would take around 11 months to completely pay off the backlog amount. The 11 month period is just an average but in places like Florida, Arizona and California, there are around 20 months of inventory which has not yet been sold.
Thus, looking at the US housing market, it can be said that although this place has seen a lot of developments; it has also been severely attacked by the sub-prime mortgage crisis. The sooner it comes back on the path of recovery the better it will be for the whole world.
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