The Future of the American Housing Market

Introduction

The current housing industry is not doing as well as it has in the past. Builders are not building as many homes, real estate companies are laying off employees, mortgage companies are closing and the average value of homes is falling in (in some areas). The housing industry is still around and always will be around the major downside to the current market conditions is the overall numbers of homes being sold. The number of homes being sold affects several other aspects including mortgage bankers, realtors, appraisers, homebuilders, inspectors and the manufacturers of the goods that are used to manufacture homes. The government has implemented several rules and regulations to rebuild the housing industry. With the market in its current state, many American's are taking advantage of the situation by purchasing foreclosed homes to gain equity at an accelerated rate.

Market trends within the United States (U.S.) housing industry will always fluctuate at the determination and constant variation of the economy. The state of the economy at any given time, affects the value of the housing market by the rising, declining and leveling of market value. These market trends affect the housing industry and its consumers through variations in market structure, entry of new firms, prices, technology, productivity, cost structure, price elasticity of demand, competition, supply and demand, and proposed government regulations. How each of these factors are affected by market trends is discussed in further detail and provides insight to consumer's and industry officials of the current market state.

History of the Housing Industry

The United States has gone through its up's and down's since the beginning, but the pursuit of happiness in accomplishing the American dream has not disappeared. Since the beginning the goal has been to start over, find work, raise a family, and own a piece of America.

In order to understand the market in which the housing industry operates in, it would be best to evaluate the industries marketing mix.

Product

The products associated with the housing industry are of course, houses. However, there are many forms of houses there are new houses and existing houses, there are ranchers, colonials, townhouses, row houses, multi-family houses, and the list can go on. All of these buildings are classified as the product that remains under the laws of supply and the laws of demand.

Place

“The term housing market can be defined as the supply and demand of real estate in a location, region or nation.” (American Lending Partners, 2008) The housing market in the United States is divided into 4 regions, North East, Midwest, South and West. The location is what makes the markets in each area so different. Individual buyers in Florida will be looking for a completely different style and cost of a home then buyers in Maine.

Promotion

The process of notifying customers of the industry and of homes for sale in specific regions is usually done through realtors such as, Long and Foster, Coldwell Banker and Remax. These companies advertise seller's products to potential buyers walk sellers ...