When I say worst real estate market in U. S. history here’s what I mean. Since the year 2004 the United States has slipped into the strongest Buyer’s Market of all time. A Buyer’s Market traditionally favors home buyers. Why? Because the number of Sellers (supply) is greater than the number of Buyers (demand). As a result real estate values will decrease in this type of real estate market. However the United States has never seen a Buyer’s Market like the current one and believe me it will never see another one like it ever again. Here’s why.

Throughout the history of the United States an occasional Buyer’s Market, that results in real estate values decreasing, has been good. Why? The reason is because it helps stabilize and realistically equalize real estate values that have increased too quickly and for the wrong reasons. However the existence of the current and strongest Buyer’s Market of all time, which has developed since the year 2004, has not been good for the U. S. real estate market and overall economy. Why? Because this Buyer’s Market has resulted in the number of home sellers (supply) increasing to unbelievable, unprecedented, and record breaking amount levels. This market has also resulted in the number of home buyers (demand) decreasing (ratio wise) to unbelievable, unprecedented, and record breaking amount levels as well. As a result of skyrocketing supply and plummeting demand not only will it take potentially years to sell the inventory of real estate that is currently for sale but during this period of time real estate values will drop like lead balloons. What’s going to make matters even worse is that as more and more Americans and their businesses continue to experience financial and psychological problems, during the existence of this real estate market and overall economic Financial Crisis, the supply of real estate will continue to dramatically increase while the demand for real estate (ratio wise) will continue to dramatically decrease. This scenario is definitely not a good one for the United States to be in. Why? Because as America’s real estate values continue to decrease, so will the amount of America’s real estate equity continue to decrease as well. When you decrease and potentially eliminate real estate equity, which by the way is 1 of the 6 Fundamentals of the U. S. economy, from America’s economic growth formula it will result in significant deterioration of the U. S. real estate market. This then leads to significant deterioration of the overall economy as well. Why? Because whatever the direction the real estate market goes in the overall economy will follow due to the fact that the real estate market is one of the main vertebra that supports the U. S. economy’s backbone. Remember it’s this backbone that enables the U. S. economy to: 1) lay down, 2) get up, 3) sit down, 4) stand up, 5) walk, 6) jog, 7) run, and sprint. So as you can see the condition of the U. S. real estate market has and always will have a tremendous impact on the condition of the overall economy. By the way I will be going in great detail about how important the existence of real estate equity is to the growth and prosperity of the U. S. real estate market and overall economy in Section #2 of this book.  

The above blog post is an excerpt from one of my new books America’s Financial Crsis Solutions. I wrote this book in the Spring of 2008 for the millions of Americans and people throughout the world who have concerns and want honest answers about: 1) the real condition of the U. S. real estate market and overall economy, 2) the reasons why America’s financial crisis developed, and most importantly 3) the solutions that will end America’s financial crisis. This book, which is 1 of 5 that comprise my Financial Crisis Training System, can be purchased on philmitschuniversity.com or by visiting Amazon.com and searching Phil Mitsch.

Respectfully,

Phil Mitsch