http://money.cnn.com/2013/04/18/real_estate/housing-recovery/index.html?iid=SF_E_River
The articles lists down the 3 reasons why the housing recovery may not last:
1. The housing recovery is being led by investors:
Basically investors are taking advantage of low interest rates and depressed home prices and as a prediction, when those rates and prices rise, they will likely pull back.
2. The economic recovery is just not strong enough yet: that's truth. Hiring slowed significantly in March, with just 88,000 jobs added - the weakest showing since last June. Meanwhile, half a million Americans withdrew from the workforce during the month; either because they stopped looking for work or retired and stopped drawing unemployment. Many were discouraged workers, a sign that the economy remains weakened.
3. Government cuts will hurt homeowners: The cuts, including unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending, combined with the expiration of payroll tax breaks earlier this year, will lead to job and income losses that could strip about a percentage point off the GDP this year.
And while current mortgage rates remain extremely low, about 3.5% for a 30-year, fixed-rate loan, they're bound to go up, the industry experts said, making it a lot more costly for people to afford homes.
The economy is still making a slow recovery. It seems like the keys to keeping the economy on the right track is lowering unemployment and increasing confidence in the economy to help keep investment steadily increasing. Some people seem to think that this may be another start to the housing bubble that was a big part of starting the recession, but hopefully the banks and homeowners have learned from what happened in 2007-2008 so we don't repeat the same mistakes.
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