Real estate is still scary

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Even though the United States economy is starting to come out of the recession, the people are still filled with a fear of buying a home in the current market.  Some of the people are afraid about how they are going to making the payments from their salary, while others are waiting to see if the prices will fall even more.  “It's perfectly natural that they should feel that way in the wake of the housing bust,” said Lawrence Yun, the chief economist for the National Association of Realtors. "It's like when the stock market is crashing," he said. "People are waiting to see if deals will get better." Moreover, home sales are down about 25% since last year. 

If fear continues to plague the people of the United States, it will create a self-fulfilling downward spiral in the housing market.  If people continue to sit on the sidelines, and wait for the prices to fall even more the supply of houses will continue to increase and the prices will continue to drop.  Investment in real estate will certainly help the United States out of the recession.