Marriage decides house price, or house price decides marriageMarriage is just like a cooperation of the buyers, the two will first integrate the original shopping list, and then adding up new items, specially some big, the comfortable house is one of them. Now that marriage is related with housing consume, is there any connection between marriage and house price?
Marriage is just like a cooperation of the buyers, the two will first integrate the original shopping list, and then adding up new items, specially some big, the comfortable house is one of them. Now that marriage is related with housing consume, is there any connection between marriage and house price?
The shocked married couple rate makes forner Federal Reserve president Alan Greenspan re-adjust his predicts of American house price in Aug. At that time, he pointed out that the house price in first half year of 2009 will become gradually stable, while it is still falling. Right now he changed his words to remit three or six months for the reason that the new couple in America is less than what he has expected. The theory of Mr Greenspan is simple, the less people get narried, the less the demand of house will be. Meanwhile, the faster the new houses complete, the faster of the speed in house providing will be. However, Mr Greenspan have not indicated that there may have a vicious circle between the falling down house price and re-organised family amount.
The data shows that two thirds American couple own house property. House is the biggest asset to them, the drop of house price would be a great lost to their family wealth. It is about eight million ordinary home-loan provided in2005 and 2006, after that, the house price falls down dramatically which makes the great part of mortgage loan have been over than their current house price, that means those family can not get money even sell off their substances. In except of that, other forms of loan and consume have also been restricted in the low state, for this reason, as a nation which is seriously depending on consume, it is really hard to recover from the crisis for America.
According to the assessment from Mr Greenspan, the American economy only can afford the house price to fall down to 5%, once it drops to 12%, there will have at least over four million houses to be listed in the minus asset group. Personally, I think that the unstable of employment and falling down private income will reduce the amount of married couples. If it directly cut down the number of new family and the demand to house, that would be the most unlucky thing. From the situation of current house price, American people really need to increase more married couples, while Chinese should decrease.
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