Housing Industry Essay

6297 words - 25 pages

Table of ContentsThe current housing industry is not doing as well as it has in the past. Builders are not building as many homes, real estate companies are laying off employees, mortgage companies are closing and the average value of homes is falling in (in some areas). The housing industry is still around and always will be around the major downside to the current market conditions is the overall numbers of homes being sold. The number of homes being sold affects several other aspects including mortgage bankers, realtors, appraisers, homebuilders, inspectors and the manufacturers of the goods that are used to manufacture homes. The government has implemented several rules and regulations to rebuild the housing industry. With the market in its current state, many American's are taking advantage of the situation by purchasing foreclosed homes to gain equity at an accelerated rate.The Housing Industry, crisis or opportunity? This argument has had analysts evaluating the economic impact of the 2006 housing slump and continues to draw fear and speculation as to the future of the market. Is there an end in sight? Will the catastrophe ever subside? To answer these questions effectively buyers and sellers alike must evaluate the current market conditions of the housing industry. By analyzing the marketing structure, the impact of new companies entering the market, prices, technology, productivity, the cost structure, the price elasticity of demand competitors, supply and demand analysis and the impact of government regulations of the housing market these conditions will be revealed and will allow involved parties to gauge the future success of the industry.Market trends within the United States (U.S.) housing industry will always fluctuate at the determination and constant variation of the economy. The state of the economy at any given time, affects the value of the housing market by the rising, declining and leveling of market value. These market trends affect the housing industry and its consumers through variations in market structure, entry of new firms, prices, technology, productivity, cost structure, price elasticity of demand, competition, supply and demand, and proposed government regulations. How each of these factors are affected by market trends is discussed in further detail and provides insight to consumer's and industry officials of the current market state.History of the Housing IndustryThe United States has gone through its up's and down's since the beginning, but the pursuit of happiness in accomplishing the American dream has not disappeared. Since the beginning the goal has been to start over, find work, raise a family, and own a piece of America.An ad printed by the Buffalo New York Commercial Advertiser Printing House (1872) states the following:•MILLIONS OF ACRES- Products will pay for land and improvements!•View on the Big Blue, between Camden and Crete, representing Valley and Rolling Prairie Land in Nebraska. Iowa...

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