The economy of the United States of America was hit terribly in the financial crisis of the year 2008. The global trade and investment meltdown was one of the worst the world had ever witnessed since the great depression in 1929. The financial crisis that had hit the world in 2008 began through the real estate market. The real estate market, particularly in the state of California was bogged down by fake securities in the form of mortgages that were then traded as securities exchange in the international market. This precipitated to the crisis. However, weirdly enough the redemption story of the United States of America so far, has depended and has been made possible by the real estate market itself.
The bounce back
After the sudden and strong growth spurt that was witnessed in the United States of America, the real estate market started picking up and also made a sudden boost. The near zero percent interest rates helped to bring back America’s economy back to normal by encouraging investments and public spending. The biggest investment spurt that was witnessed in the nation soon after the economic growth was in the real estate market. People flocked towards purchasing property, all over the country, including in remote inland areas and suburbs. It also brought in foreign investment in greater amounts.
The real estate market has been quite strongly affected by the current and ongoing presidential elections of 2016. The Presidential elections have currently affected the real estate market by putting a sudden hold and a lag on investments. However, not many financial experts are worried about the phenomenon, especially considering that this is not an unprecedented occurrence. Experts claim that the radical slow-down in the real estate market during the nation’s presidential election is normal and has happened before. For instance, the growth rate of investments slowed down by over five percent during the Obama and McCain Presidential election in 2008.
A slow rate
On the other hand, many experts are more concerned that several areas in continental United States are lagging behind the larger real estate markets, and even the national average. Remote regions in Hawaii, and several deep inland regions and states such as Nebraska and Oklahoma are states that have tepid investments at best. While the growth rate is still substantial, it still has a long way to go in order to catch up to the national average.