A strong housing market is the result of a strong economy -- not the cause. Sheesh, I mean, you can't buy a house [and, like, actually pay for it] if you don't have a job. Yet, I continue to read these numbskulls who think housing will somehow save the economy.
I'm of the impression they don't think things through.
Even if the economy were good, the housing market would still be in a slump. When I hear people talk about a recovery, I just ask, where are the buyers going to come from? Baby boomers are now empty nesters, they are starting to downsize, or at leat would if they aren’t underwater and could find a buyer. There aren’t enough young people to buy all the houses out there, even if they had jobs and could get a loan. Then there are tens of millions with forclosures, bankruptcies, etc. in the last few years who won’t be able to get a loan even if they have a job and can afford it. I just don’t see any way it turns around any time soon.