I have been reading many different ideas about the problems in our Real Estate markets.
I think it is important for us all to focus on the solution. The market got overheated and out of line by inappropriate use of capital. The capital has been removed, which as you all can see has not only hurt the market but our whole economy.
Let us review these facts:
Overbuilding which was accommodated by unqualified purchasers of homes started the problem. Over pricing, by having too much capital in too many hands which was not normally available caused prices to accelerate and rise to high too fast.
The laws of physics tell us, you can not sustain a rise without more capital and more people to use it. It also says when the supply of capital and people lessen an equal and opposite reaction will occur until it is interrupted by more of the original fuel, MONEY, mortgage money, at a very good rate, not without qualification.
The offset is there are people, there are always people who will step up, but the incentive of a low fix rate that will really get approved, if you have dissent qualification.
Right now even good credit worthy people, are not getting mortgages.
I say to my fellow Realtors, builders, real estate investors, real estate buyer and sellers, we must step up and let our law makers get this done.
We need government provided, through Fannie and Freddie, loans at 4.5%, to normal qualified buyers. This will work. We could be doing better if people could just get mortgages, imagine if they got good mortgages that made them want to buy!
We must let our lawmakers aware of our interest in getting this done!
I see people denied mortgages that should not be denied mainly because the lenders don't have the capital to lend. Let's not waste our time thinking it will fix it self. The Banks are keeping the money to themselves. People are no longer trying to buy in many cases because they have been denied.
It is our lives!
What do you think?
Richard
view my new homes for sale
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