Ok so the national real estate market is doing poorly. Many markets are seeing falling prices. When prices are falling, people with low savings that are forced to sell can find themselves facing foreclosure. The credit crunch is lowering the number of buyers further depressing prices. What are some steps to help the market and avoid a record number of defaults?
1) Lower interest rates
2) Help buyers avoid foreclosure by offering buyers flexibility on loans
3) Construct a bunch of houses and dump them on the market further depressing prices.
Wait what? Yes the House is looking at a measure to provide 800 million to 1 billion a year to create 1.5 million affordable housing units over the next decade. The last time I checked artificially increasing inventory at a time of depressed demand isn't exactly the best way to deal with problems associated with falling prices.
When I was writing this I was trying to think of a worse plan so I could write something along the lines of "While they are dumping houses on the market why don't they just ...". But I actually can't think of anything worse for the housing market at this point in time.
I understand that affordable housing units are needed. But simply put, when we are facing the worst national real estate market in decades is not the time for the government to spend money to dump a bunch of additional units on the market.
If you are looking in the Austin Real Estate market Ki can help you navigate the Austin market. His site provides information on Austin Condos along with a search of the Austin MLS
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