A study on the slowdown in the US real estates and its impact
- A brief history of recession
- Definition of recession
- Reasons for recession in the US
- The case of Lehman Brothers
- Slowdown in US housing market and its impact
- US housing bubbles
- Top 7 countries that invest in the US real estates
Recession in US has affected the other countries also along with it. US is the leading trader with many countries. Hence if the us economy slows down it would ultimately affect the other countries also. To get in further details it's important to know the meaning of recession.
Recession is the period of economic decline in the Gross Domestic Product for two or more consecutive quarters. Productions as gauged by Gross Domestic Product (GDP) employment, investments, foreign direct investments, utilization of capacity, per capita income and business incomes all fall during recessions. Many macro economic indicators vary in a similar way during this stage. Recession mostly occurs due to drop in the stock market, increase in unemployment and decline in real estates market. If the recession period continues for a longer period than it is termed to be depression. Government usually during the period of recession adopts expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
[...] Definition REAL ESTATES:A piece of land including the air above it and ground below it, and any building or structures on it. Real estate can include business and/or residential properties, and are generally sold either by e realtor or directly by the individual who owns the property. In most situations in United States, real estate is a legal designation, and is subject to legislation, also called realty. REASONS WHY THE US FACES RECESSION 1. The first and foremost reason is the sub prime mortgage crisis. [...]
[...] SLOW DOWN IN U.S HOUSING MARKET AND ITS IMPACT Slowdown in the housing market has made a serious impact on the economy since last few years. It has adversely affected the country's economy . In the later summer between 2005 and 2006, the U.S housing market gradually decreased due to this the market started facing problems like decreasing in the prices and sales volume. The growth in the interest rates and prices as directly affected the housing market in U.S.A report from Barron's magazine discloses the median price of new homes to be decreased by about since January 2006.The inventories of the existing home were 39%higher than they were a year before, the sales were down by more than 10per cent, The estimation is also made that the national median price of housing will mostly fall by 30% in the next few years. [...]