When our housing market tanked so did many related businesses. The swimming pool industry was a huge business just a short two years ago.
Pool contractors are just one example of companies laying workers off and downsizing or completely closing due to the downturn in the housing market. This is a problem nationwide. Some pool contractors said they had clients who want to put a pool in but can’t get financing. The home building contractor who is still in business, have cut back on things such as pools in an effort to reduce the retail price of the home.
This is a domino effect that is far reaching and seems to have no end in sight. As one segment of the economy decreases, it causes other segments to falter. Our economy is based largely on the housing industry and I don’t believe we will see a rebound anytime soon. I believe we will continue to see a housing market continue to tank and that will cause even more financial problems down the road.
There are people today who can’t get financing for new homes that are already built and ready to move in. The banks don’t want to lend because of the falling value and an ongoing effort to shore up their books. Why are the values falling, because homes aren’t selling, why are they not selling, because buyers who are still working and want to purchase a home can’t get financing. So we have a situation where the homes that have been on the market will continue to sit and while they are sitting they are losing value, while they are losing value the housing industry sinks deeper and more related businesses lay off workers or close their doors. We must all remember one important piece of this puzzle. Our home values are still falling. Does this sound like a dog chasing its tail?