- Foreclosures are still flooding the market.
- High unemployment remains a problem.
- Potential buyers struggling with bad credit.
With this being the third dip in housing since the beginning of the economic woes there have been many efforts to spur growth or simply halt the fall of housing. The government has given tax credits to first-time home buyers as an incentive to purchase. They have artificially made efforts to push home loan rates lower, and now make further efforts to offer refinancing for those upside-down in their home value. With all of these things slowing the fall but not eliminating it, I am led to believe that maybe the invisible hand theory would have been best. Maybe we would have seen one sharp drop and already begun the recovery in our economy. While I always have believed that the economy could correct itself I was also fearful that without some assistance we wouldn't have been able to weather this storm.