If I were devising a plan to decimate the Real Estate Industry I would:
1. Not provide financing for move-ups requiring loans above the FNMA limit thus reducing upward mobility (no Government support).
2. Try to cap Real Estate Values using appraisers (HVCC).
3. Increase time delays for Real Estate Closings (new Lender Good Faith Disclosure requirements and HUD -1 requirement in California).
4. Dramatically increase complexity and time delays for lending on Condominiums, which are the primary entrance price point into the housing market by first time home buyers (FHA Mortgage Letter 2009-19). Reducing the first time home buyer market.
The Government’s current actions have been the perfect plan to decimate the housing market and there by keeping it in crises!!!
This reminds me of when the Government decided to punish the Savings & Loan Industry and legislated them out of existence.
Is our Government getting even with us for their perceived idea we the Real Estate professionals caused the Mortgage Meltdown and not their legislative actions???
Do we set prices? No, the willing Buyers and willing Sellers set prices.
What happened to the market place is reflected when "if you can fog a mirror you can get a loan" so expanded the Buyers side of the value equation, it caused housing values to go out of site.
We were transaction facilitators, but not value creators.
Some how we need to inform the Legislator's constituents (us) that the legislators need to fix these issues as stated above to allow the market place to operate normally and rebuild constituents Real Estate Values!!!