The Housing Cycle

I have posted this illustration several times and it is again appropriate. This housing cycle is unique to this recessionary period. Simply because the recovery is slow and the latest GDP estimates indicate the lack of economic growth. In past recessions, the recoveries have been faster and more definitive. Although, foreclosures and short sales existed, they were NOT headlines and the cycles were broken.

We are approaching 2-years after the “great recession” officially ended and signs of being able to break this housing cycle are not evident. Until this cycle is broken, our economic problems will persist. As we enter into the Presidential election year, remember --- “as housing goes…so goes the economy”!