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DOES THE REAL ESTATE MARKET NEED SAVING?

DOES THE REAL ESTATE MARKET NEED SAVING?

This morning I was reading Richard Weisser's featured post, "A completely new proposal to save the real estate market. It's not as crazy as you might think!"...

In the post Richard writes of his new idea to save the real estate market. His plan involves "A dollar for dollar tax deduction for down payments". Seems like a pretty good idea...

But I am struggling with the premise...

Why does the real estate market need saving? Is it really that bad?

I thought it was a great time to buy a home...

Interest rates low. Prices down. Lot's of inventory to choose from.

So what gives?

Does the real estate market really need saving?

Ken

A Realtor you can trust.

Lake Carrolwood, Naperville

-It was a sunny day at the Carrolwood townhomes in Naperville. Is the real estate market's future just as bright?

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Posted by Ken Tracy Realtor Naperville Illinois Real Estate on 10/23/2009 11:23 AM

Comments (8)

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does the real estate market need saving, carrolwood naperville, is now a great time to buy

Originally posted at: Ken's Naperville Real Estate Blog : DOES THE REAL ESTATE MARKET NEED SAVING?

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8 Comments on DOES THE REAL ESTATE MARKET NEED SAVING?

OCT

It's all about your local market. Some areas could greatly benefit, while others not so much.

It is all about localism. As an industry, real estate will drive our recovery.

My market is not a market that needs saving. It was just reported on Wednesday that sales increased 6.4% year over year. We're doing well with the low rates... but I can see other parts of the country doing much worse.

Hi James, Larry, and Donna. Thanks for stopping in.

Yes, different areas are hurt worse than others. My area hurt more than average, I would guess...

But I am a big believer in free markets. When the NAR says the market needs a tax credit, they are telling consumers maybe it really isn't so great out there...

I would like to reverse the message.

Thanks again,

Ken

Ken...

American homeowners have lost TRILLIONS of dollars in equity. There are thousands or foreclosures every day because sellers cannot sell their homes for what they owe on it.

Many otherwise financially healthy homeowners have resorted to bankruptcy which will eliminate them from the buyers pool for year.

There are hundreds of billion dollars in standing inventory, hundreds of thousands of lost construction jobs, and declining revenue for state and local governments.

And for those that think that their markets are strong, they had better think again. As industry seeks to lower costs, many will relocate to states with cheap real estate and workers ready to take a job of any kind.

In north Atlanta, there are THOUSANDS of $500K houses sitting vacant, one Ghost town subdivision after another.

Use your own MLS data for total DOLLAR amount of sales for the last 4 years and you would be amazed at the drop is dollar volume of sales.

Oh, but I agree that my ultimate preference would be a totally free market, but unfortunately, I think that ship has sailed.

Good discussion topic my friend.

Featured in the Group "Whacked!!!"

Hi Richard. Thanks much!

Maybe those $500K homes in North Atlanta really are $350K homes...

I don't want the government spending billions propping up the market.

It is going where it is going...

Thanks again,

Ken

Hi Ken... In a word, "NO!" I agree with your logic, just because a house WAS worth $500K does not mean that it was really worth that much or should be worth that much again. And I certainly do not want to see tax dollars spent to drive that price back up again. What's wrong with rational home values that reflect market realities instead of future aspirations or longing for past values?

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