U.S Housing Market since ’08

It’s been ten years since the U.S. housing market crashed and caused many banks to close their doors and many people to lose their homes.

The question today is, has the market recovered? It depends on where you look….it is predicted that the market will have fully recovered by 2025, says Ralph McLaughlin, chief economist.

When predicting the recovery of the housing market, it is vital that you keep in mind the key factor of location.

Housing development varies greatly from state to state and it is places like California where we see a complete recovery in some areas and little to no recovery in others.

Such a large range between close by spaces is due to factors such as the city’s overall well-being. By this, I mean population growth and job outlook.

When a community is expanding and working within its own limits it is inevitable that different areas in the community will also look up, such as the housing market.

When developing the statistics in assessing the recovery of the housing market we compare current data to pre-recession …

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U.S Housing Giants Continue Losses

Fannie Mae and Freddie Mac are known to be “too big to fail”….at least that’s what the U.S had said up until the 2008 financial crisis.

In 1968 Fannie Mae and Freddie Mac had become a government-sponsored enterprise, a term insinuating that the government would always be there to bail them out if needed.

In 2008, the government was there to do just that.

With extreme lending of subprime mortgages, the economy quickly began to fail. Individuals were able to get mortgages they were unable to repay, something that would have been easily foreseeable, had the lenders set stricter requirements.

In this time, Fannie Mae and Freddie Mac had borrowed over $187 billion. And now, finally, they have repaid to the full amount and more…leaving the Trump administration to decide what to do next.

With reporting of a fourth-quarter net loss, it is obvious they have yet to recover to pre-crisis standards, and neither is it surprising that they are looking for taxpayer help with the new tax bill that has been passed by the trump administration.

This crisis begs …

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