…any expression of economic optimism has to be tempered these days. Company managements, policymakers and investors fear that the worsening European economies have put us on the verge of another global catastrophe. The Organisation for Economic Co-operation and Development (OECD)—the Paris-based think tank for developed nations—recently projected that the euro zone will contract by 0.1% in 2012. China’s economy appears to be losing momentum. Washington remains paralyzed as high-stakes elections loom. And foreclosures, short sales and a large “shadow inventory” of homes—ones held off the market but waiting to be sold—weigh on the housing recovery.
The housing-market recovery is likely to be a long, drawn-out affair. Most people know the lesson from the boom and bust is that it doesn’t pay to buy and own without conservative financing. For example, the figures that show owning is cheaper than renting on a monthly basis are based on the assumption of a 20% down payment.
Whole article: Is the Housing Collapse Over? | RISMedia.