Homebuyers Will Remain Hesitant for Years

The study, entitled "Household Reaction to the Financial Crisis: Scared or Scarred?", found that the higher unemployment rate for Americans aged 16 to 24 could have a lasting impact on that generation's lifetime earnings and attitudes toward risk and social policies. Meanwhile, many of their parents and grandparents are delaying retirement or reentering the workforce in an attempt to rebuild nest eggs that were wiped out by the economic collapse.

Peek said that it is unlikely that the dramatic increase in loan delinquencies, home foreclosures, and bankruptcies will change because employment and home prices are likely to remain depressed and ongoing problems with loans will restrain banks' willingness and ability to provide credit.

"Unfortunately, we face the possibility of being caught in a vicious circle," Peek said. "The cutbacks in consumer and business spending are likely to contribute to a more anemic recovery. In turn, we will likely see a deepened and prolonged weakness in consumer and business spending, further undermining the recovery. The longer the malaise in economic activity continues, the more likely that diminished spending persists, adversely affecting future economic growth and the standard of living. Such headwinds to a strong economic recovery are likely to have lasting impacts on the values and behavior of the current generation, much as the Great Depression had on its generation."

People have short memories. They will go back to buying houses down the road.

You're just begging for me to point out that nobody cares about one particular street in New Jersey, aren't you?

12% fewer say homes are good investments
May 11th, 2010, 12:14 pm · 20 Comments · posted by Jeff Collins
Only 56% of Orange County residents responding to a survey said that owning a home is a good or excellent investment. A decade ago, 68% of people responding to a similar survey saw home-ownership as a good or excellent way to invest.

And 41% said that owning a home is a fair or a poor investment this year, compared to 29% in 2000.
http://lansner.freedomblogging.com/2010/05/11/12-fewer-say-homes-are-good-investments/65177/

The poll is confined to the residents of only 1 county. Not very accurate.