I do agree that the supply of existing homes is up, which will effect pricing to an extent. What I disagree with is that demand is down. Just about everyone who wanted to purchase a home 3 to 5 years ago, still does. The problem is that the companies that supply mortgages went from loaning money if you could 'fog a mirror'. To not loaning money to anyone whether you could pay it back or not. I believe that when the banks, that received my tax money to bail them out, start loaning money again you will see the demand come out of hiding.
I do not want the banks and mortgage companies to get in to the bad loan habits of late, but i do think that the way they look at credit worthiness will have to change. there are a lot of people who lost jobs, and were out of work or took lower paying jobs just to have work and had problems paying bills. The banks and mortgage companies were part of the reason these people ended up in the situation they were/are in. Now they need to revamp their system to accomodate people who had good credit for years until this recession.
I hope that everyone(outside the real estate and construction industry) has learned from this, the housing industry is the driving force of the American economy.
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