There’s no question that the real estate crash of 1 or 2 years ago has put a damper on the whole marketplace. It lead directly to many lost roles abd some industries, like construction, have practically been ruined by the problems in the housing market.

So until folk start purchasing homes again plenty of other industries may continue to be slow.

In fact , there are several industries concerned in the home market. Not only property related industries like home sellers and mortgage corporations, but construction-related firms like home builders, plumbers, floor installers and painters. Also enterprises that service those companies like home repair stores or furniture and appliance stores.

Yes there are a lot of related companies waiting for the home market to recover.

So the actual question is… When will the property market get better?

Naturally, it’s all difficult to predict. So many things must improve. And yes the economy in total is perhaps the gigantic culprit.

Businesses will not hire until they feel that they have customers ready to purchase. Buyers can’t buy until they have jobs and cash or at the very least the confidence that more money is on the way.

So one piece of the economy is waiting for another which is waiting for another. It is a viscous cycle.

And in many ways, it’s all mental. Like someone said… “We have nothing to fear but fear itself.”

Yes a down marketplace is virtually a self-fulfilling prophesy. Until folks feel more confident they don't take risks on huge purchases, like houses or automobiles, or take holidays or perhaps buy big appliances like Televisions. Everyone cuts back on spending, which naturally just makes things worse because it means enterprises don’t hire, or worse, go into Chapter 11. Which naturally means fewer jobs.
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And round and round we go.

So everything is related and essentially due to some other part of the economy breaking down.

Take the housing market…

With home prices so low, many people don’t want to sell because they think they are losing money matched against what their houses were worth on paper a few years ago. But that means less homes are on the market. And that suggests fewer sales can happen and that ultimately means less sales.

Now there are less houses available for sale than there has been in numerous years. Available homes for sale really went down over 25% in January of 2013 matched against January of 2012. And although housing sales and prices were high in Jan of 2013, they could have been a lot better if there were more houses on the market.

And with the lower housing prices, people with underwater mortgages are actually doing short sales to get out from under an awkward situation. This keeps housing prices low also. Though selling short sales might be helpful in the short run to get the housing market past the foreclosure crisis we are still experiencing.

So that you can see, there’s plenty of reasons why the housing market has been so slow to recover. It’s still almost an ideal storm of issues that must be overcome before we see things back to normal with a robust housing market and overall economy.

So it comes back to being patient and maybe taking a chance on buying something, just to help the economy.

Rick Hart is an internet business advisor. He provides tools for short sale barristers in Tampa that help with loan modifications, short sales and foreclosures.