It has been reported that in the month of November, there was an abrupt downfall in the home prices in the US market. The customers became quite pessimistic in January, which in turn highlights the sprints, waiting for a jarring economic recovery.
It has been predicted that the economic status of US will come to a slow track, after it had accelerated at its firmest pace till 2011. While the economists expected that this lowering will be of 0.5 per cent, the actual drop is of 0.7 per cent; this data has been retrieved from the composite index of the home prices of a single-family in about 20 metropolitan zones by Case-Shiller.
Another surprising fact is that, this steep declination further experienced a thrash in October, 2011. The Board of Conference (that represents the private companies) claimed that the Americans became low-spirited about the prospects of income, as well as, the job arcade, which led to the drop from 64.8 to 61.1, in the month of January. After the market started to recover in the November-December span, it was expected that the price will go up.
Sean Incremona, an Economist in a New York firm, 4Cast Ltd said that the scenario for the next couple of months may continue to remain this fluctuating; this in turn may frustrate people who are sticking to their expectations for an incremental data. It is also said that the US economy is still in a position of a modest recovery. There has been an increase in income of average Americans in December, but the consumer spending has not yet picked up.
Some are hoping to see the economic status revive, while some feel that the situation have bottomed out. The debate still lies in and everybody is hoping to see the housing market recover.