Unintended consequences … A Recovery Issue.
Economic recovery is good, right. If and when the economy begins to recover, what could possibly go wrong with that. Consider this. How many companies have gone out of business or just cut back since our economic misseries started. Countless, no doubt. That is why there is growing unemployment.
What does a recovery mean for the housing market? Look at it this way.
When people start spending the money they have been saving AND have confidence that Big Gov is not going to throw any “spur of the moment” tax and regulation surprises on consumers and producers, then what?
People want to spend. See. Like. Buy. That is how we do it.
Yet, how many businesses that support the housing market will have been shut down, some for a number of years. IF they reopen, how long will it take for “hopeful” businesses to ramp up, hire and train workers, find and satisfy customers, and then meet a overflowing demand for housing products in an effective and efficient manner. It will not be over night, that is for sure.
Re-starting may take a year or more for those who can and will take on the risk. In the short term, there will be shortages leading to high prices. So even in recovery, there will be issues related to five or six years of depressing economic markets. The economy is not likely to turn around quickly, even when the business climate is favorable.
As solution; buy now.
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