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Economy improves, but real estate is still in depression
SUNDAY, MARCH 25, 2012
THE RECORD
The economy looks a little stronger. New weekly unemployment claims are falling. More people are going back to work, and the gross domestic product is rising. The unusually warm winter helped everyone feel better — and spend less on energy.
Then there’s the real estate industry, which remains mired in a depression. New-home sales remain at or near an all-time low. Pending home sales seem to be trending up, but Realtors say deals are being canceled at a historic high rate because of homes failing to appraise out in value and lenders getting nervous twitches in the final moments before a closing.
And then there’s the number of Americans who are underwater with their mortgages — that is, their homes are worth less than the mortgage balance that remains.
