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Let's Get to THe Bottom

By
Real Estate Agent with Roudebush Realty,Inc.

Let's Get to THe Bottom

I read this and I am thrilled that we are starting to see other people thoughts on getting to the bottom. THe government needs to get out and we will settle down and start to climb. The sooner the better..... Buyers are not dumb and there are plenty of them out there just waiting to move.

As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.” 

 via the NY Times

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

What a lot of analysts just can't figure out is that there are not that many qualified buyers.  A qualified buyer needs to be a first time buyer with a job and some cash, and they need either a month to month lease or one that ends in a few months.  If the qualified buyer is already a homeowner, then they need a job, and either a big pile of money or some equity in their current home.  That probably means that they have lived there for at least nine years and haven't done a cash out refi.  Where have all the qualified buyers gone?  Nowhere.  They don't exist. 

Sep 07, 2010 07:41 AM
Wade Kawahara
Dominion Real Estate Partners, LLC - Phoenix, AZ

Beth, the sooner we get to the bottom of the market,  the sooner we will start to recover.  Hopefully we are at or near the bottom now.

Sep 07, 2010 07:42 AM