Part of the economy is the real estate market. So anything that impacts it also impacts the overall economy as well. Similarly, any events in the economy as a whole also are visible in the real estate market. The U.S. economy struggled against a variety of difficulties in the past several years. As would be expected, the real estate market similarly suffered from the same traumatic events.

The economy’s condition certainly spills over to the real estate industry. Once upon a time, this had great positive impacts. As the economy is facing headwinds and faltering, many individuals are likely to move their capital into real estate. As they are fearful of what will transpire with the overall economy, the majority of these investors will withdraw their money from the stock market. Real Estate has typically been treated as a physical holding which had the potential to protect their wealth.

However, all of that changed in the recent financial challenges faced by the country. Even the real estate market was massively impacted. This happened as a direct result of the devastating events which forced a number of homeowners to forfeit their properties.

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The number of buyers is low for various reasons. One is the lack of confidence that people have in the economy. As they lack confidence in what will occur with regards to the economy and the market, many consumers insist on keeping their money close. The rate of unemployment now is another factor to why people are not considering buying a house at this time. People fear the loss of their jobs now, so they are trying to save up as much money as possible.

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