The Housing Market Recovering, But Who’s Buying?

According to some sources, housing starts are increasing and that could be due in part to the tax incentives.  Laborers are going back to work to finish projects and start new ones.  But, still, who is out there in good enough shape to buy the new houses!

Today’s unemployment rate may be decreasing some, but the debt left from the unemployment has to be paid. Consumers, feeling overly joyous about resuming work, must work to pay off the debts from the unemployment phase before there is money to go forward.  This “catch up” mode will stifle the “dash ahead” mode. 

Why would an individual want to get right back into a foreclosure situation?  Take the average family who may not like where they live, but they also encountered doctor bills and living expenses which didn’t stop due to the recession or loss of their jobs. You can’t get something on the promise that you can pay off a mortgage while recovering from the recession.

You might find yourself getting approved for a loan that you can’t pay back. That will put you right back into the hole and then, what happens!  It sounds like the beginning of what just happened.  It is hard to think that the banks would behave and not offer you a loan.  You have to be smarter than the banks and you must be realistic about your investing potential.

Once debts incurred during your down time are paid off, stash some money away for the future.  Too many people lost huge amounts of retirement savings and portfolio earnings.  This was a hard time for the man ready to retire.  He knew he would live modestly, but never dreamed his modest level would evolve into sheer existence.  Save a little for later.

Americans must learn to save resources of energy and money.  The economy has not healed, the spending needs to be modest for now and hold on to any job you have. Make a start to repay all debts.

When the economy changes, prices stop rising at the gas pump and the grocery store, when health care is truly being analyzed and seniors are not giving up food in order to buy prescriptions, then maybe investing can be done in small bites.  It is true, that if you start buying, more jobs will become available because manpower will be needed.  Are you going to be earning enough money to pay for the goods and services you need?

It is up to you!  Each person must take a stand on how to spend and invest. Money has been hard to come by in the last year of jobs cuts and bailouts.  Living within your means is golden.  The days of 1959 are long gone!  The Jones can’t even keep up with the Smiths.  Don’t be fooled.  Your efforts are needed for changing the economy.  Healthy budgets are the way to get well.  When you decide that it is time to invest, be wise!