What’s going on in the housing market this month? FUD….Fear, Uncertainty and Doubt. Between media outlets and politicians campaigning during the last six weeks, the dissemination of negative, dubious and speculative information on the housing market is bringing the American public further down in the dumps. As credibility of banks and concern about the accuracy of the foreclosure system in America, this level of unfavorable opinions and speculation is only delaying the ultimate reckoning in the housing market. These issues and drama are leading the housing market into a period of hibernation as activity generally decreases during the winter months and that may be exacerbated by the calls for foreclosure moratoriums and the uncertainty in American politics. While not addressing the merits and flaws of the foreclosure moratorium, consider the definition of hibernation:
Hibernation is a state of inactivity and metabolic depression in animals, characterized by lower body temperature, slower breathing, and lower metabolic rate. Hibernating animals conserve food, especially during winter when food is short, tapping energy reserves, body fat, at a slow rate.
Depression, inactivity, cool temperatures sound like symptoms of today’s housing market even though mortgage rates continue to be at or near historic lows. This state of inactivity is supported by the fact that unless there is an absolute need for people to move or sell their homes, people are staying put. As seniors continue to examine housing choices, the choice to remain in place will remain simple and conservative unless there are pressing circumstances.
Let’s hope the housing market has enough reserves to last the winter and has the impetus to waken from hibernation early next spring.