Low interest rates, easy credit (of course you have to qualify for the money), confident buyers, well priced homes, motivated sellers! Yep, that sounds like a good stimulus to me! I'll take that.
When you think about it, almost all of those elements are in place. Credit...well lets say that is starting to improve, heck, the banks have been given all there money back, so hopefully they'll start returning the favor. "Hope" is the key word. The only other element that we need, in my opinion, is the confidence factor. Confidence is key! I think that is close at hand as well. I don't know about all the other real estate markets out there, but in my market(and probably yours), there is a tremendous amount of value in existing homes. The prices have gotten so low, that trying to recreate a lot those homes at the same price could not happen. The cost to build that same home + the dirt, exceeds the price of an existing one. Now there's a concept. I think I can sell that! Did I mention that the sellers of existing homes are motivated? That helps too!
And then there is the interest rate. I have read all the talk about reducing the rate the 4.5% and I agree that would be nice. Isn't it already in the mid to low 5's? That pretty good the last time I checked... and the fundamentals seem to be in place for lower rates to come.
As it relates to my stimulus, I would like to see an effort (maybe use some of those bailout funds) to assist homeowners (landowners, investors), me included, with our mortgage issues. I hear all the talk about assisting delinquent mortgage holders, but nothing for the responsible on time mortgagors...or is it ees...I seems to get those mixed up sometimes. We feel it too.. I'm sure there are a lot of people who owe more for there home than it is currently worth... right? Maybe create ways to assist those who are upside down refinance to more attractive rates?? A little forward thinking... help those that pay on time. In my case, despite putting a lot of money down when I purchased, the equity is gone. I can't refi because there is no equity. It would be nice to be able to get that low rate. But I can't. A little reward to staying current would be nice! Is that too much to ask?
Make it a great day!
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