Until the US housing market starts to right itself it’s unlikely US consumers are going to gain too much confidence and without confidence the chance of economic recovery will remain a forlorn dream.
House prices are still down 32% from their 2006 peak and this is where the viscous cycle kicks in. Depressed house prices decimate loan-valuation ratios which triggers defaults but wannabe vendors can’t sell in a falling market……………………………………….Full Article: Source