If all the media outlets are correct and housing is showing signs of a real recovery, would there still be a need to continue subsidizing the RIGHT (privilege) of home ownership? All the talk of an end to the $8,000 1st. time home buyer credit is just to push potential buyers into homes.
The $8,000 government home buyer credit will NOT end in November! If anything, it may be increased to $15,000 and expanded! Government housing handouts will continue!
All of these government handouts (and that is what they are) simply equals pulled forward demand that will “crash” the housing market once the punch bowl is pulled.
Do you think our government policy makers knows a darn thing about the real business world? Right, that’s why they went into government
WELCOME TO THE FULLY SUBSIDIZED MARKET
HOMES
CARS
APPLIANCES
???????
The home buyers credit will not help in the long run….it will only prolong the existing problems. As an investor, I think the buyer’s market will continue for quite some time.
If the current real estate model only works with government propping up prices with too low interest rates, too low down payments, and large credits of $8000 and maybe $15,000, then the model is broken.
It appalls me that most real estate professionals believe that the only way their industry can survive is with the government spending tens of billions of dollars (it does not have by the way). They know better: when prices fall enough , buyers come in of their own accord and they don’t need the government to nanny-broker the deal.
Are teenagers running this country now? What a mess.
I am optimistic that the credit will do us good in the long run. It’s put some of the families on the right track and that opportunity will jump start contributing families!
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Homes will always be unaffordable to the average person in high priced CA as long as government subsidize home owners in the form of mortgage tax deductions, and Fannie Mae bailouts. Remove the interest tax deduction and watch the prices correct 50%. This place a bottom on home prices and increase home ownership than further government meddling. The issue is affordability, not unemployment. Prices are still too high due to government tax policies and bad lending practices.
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I think that in the long run, everything will probably be okay. The government will save us.
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Everyone likes to talk about the foreclosures as if it’s a bad thing when the reality is that it’s an incredibly good thing. All the bad loans inflated the market well beyond what it should have been. As these people default on their bad loans the price of housing corrects, as it should, and maybe the rest of us get to buy. This story is good news and it should be reported as such. Or, would we all be better off if the government steps in and inflates pricing again.
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OK People, for those too dopey to attend Freshman Economics: Since 2001, the Federal Government has created a deficit of $3 Trillion. We’ve devalued the dollar and borrowed money from China; thus creating an inflationary, recessionary economy. While interest rates were artificially low, people borrowed mortgage money at the going rate. Mr. Berneke and his buddies created this situation and now they need to fix it. $25 Billion is only 2.5 months of budget for the Iraq war. Small potatoes.
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The real estate market has been subsidized for years through FNMA (Fannie Mae.) While there may not have been an official link between FNMA and government it was assumed the government would bail them out. Apparently interest rates would be higher if they didn’t buy up the loans. Higher interest rates mean lower home prices to maintain the same monthly payment.