Once again, the government seems to have forgotten that the failing housing market is the single most important aspect to economic recovery and job creation.
On Thursday, President Obama gave an impassioned appeal for $447 billion in tax cuts as his plan to create jobs. One item of note conspicuously absent was how to help the housing market recover more quickly and restore industry jobs. By the way – anyone care to guess how many real estate agents dropped out of the market in the last 3 years?
While Obama did pledge to help “responsible homeowners” refinance existing mortgages, his plan sounds familiar. Haven’t we heard this before? Has it worked?
According to the LA Times story:
Home sales, prices and construction have been bad and have been getting worse for so long that Washington and many Americans have grown numb to the problem…
Coming out of the deep recession of the early 1980s, new-home construction roared back to life — propelling the economy forward and creating 9% of the new jobs in the first year of recovery. This time around, construction accounted for 93% of the net decline in employment.
“Housing — it’s not the American dream, it’s the nightmare,” says Karl E. Case, co-founder of the Case-Shiller home-price index. The latest reading of the index, which calculates price changes for the U.S., fell 4.5% in June year-over-year and is down 32% from five years earlier.
It’s obvious that the housing market is the root cause of many of our economic problems, including high unemployment. It is the economy’s “silent killer,” as the writer says. And it seems to be the forgotten industry.
What did you think of the Obama jobs plan? Will it help the real estate industry? Please share your thoughts.