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A firmer floor for US housing

Posted on: 01-04-2012 by Floor Covering Media

Members (and Visitors):

Floor Covering Media found an article, recently published in Business Spectator, about a firmer floor for US Housing. This article, written by Robert Gottliebsen & Alexander Liddington-Cox, informs readers as in Australia, US consumer confidence is inextricably linked to the value of houses – and the slump in US housing is what has prevented the 2011 American stimulus measures from working, as hoped. It looks like at last, in 2012, there is some good news coming. But if American growth is to stay in the black, the US needs to stop the house price decline, because many Americans have their businesses attached to their property in some way and so are starved of capital. Even more importantly, many Americans can afford to stay in their homes, but are in negative equity so can’t move. This reduces workforce mobility, which means there are some jobs being filled by substandard candidates, or no one at all, because the ideal worker is stuck in Atlanta with a home loan that’s underwater. Quite possibly they’ll be earning less as well; according to the article. More in Business Spectator.

Sincerely,

FCM Staff

Link (Thread Shown):

www.businessspectator.com.au/bs.nsf/Article/US-housing-property-markets-debt-crisis-subprime-e-pd20111222-PS2TD

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