Andres Duenas wrote a great article (above) and I just wanted to add to that.
I agree that while our economy is strained and we keep hearing parallels to the great depression we must remain optimistic. Opportunities are present in our business but we must create a mind shift and move with the times, the housing market must begin it's recovery and the rest will follow. You bring up some very valid reasons as to why the housing market is in line for recovery, i.e. home price at or near rock bottom, interest rates at historic lows, gas prices somewhat stabilizing, but I think you might have missed one very crucial element, Down Payment Assistance Programs. I feel it is vital for the recovery of the housing economy, a great shot in the arm that we in the business must support and push for.
Please read the following statistics:
Down payment assistance (DPA) programs in the U.S. had a major beneficial impact on the economy last year, creating $38.6 billion in revenues, 235,000 jobs, and $4.6 billion in total tax revenues, according to an economic-impact study done by two well-respected California economists, Dr. Robert Waste and Dr. Robert Fountain.
Some highlights of their research:
- More than 200,000 new and existing homes were sold last year with DPA. (The research covered the 12 months from December 2007 through November 2008.) Roughly 40% of all loans originated by the Federal Housing Administration used DPA.
- Nehemiah's DPA program helped families purchase more than 78,000 new and existing homes last year. More than 25% of those sales were on foreclosed homes, effectively taking them off the market.
- About 40% of the borrowers were households headed by minorities and more than one-third were headed by females.
- Of 235,000 new jobs created last year, 195,000 came from new-home construction and the rest from new-home sales. DPA also accounted for $4.6 billion in total tax revenues last year.
Fact Sheet Study Summary
Support H.R. 600 The Waste/Fountain Study supports the passage of H.R. 600 - FHA Seller-Financed Downpayment Reform Act of 2009, a bi-partisan bill introduced by Representative Al Green (D-TX). Reformed DPA will play a key role in generating homeownership at no cost to U.S. government or taxpayers, according to a Congressional Budget Office (CBO) report. Send a letterto your elected officials in support H.R. 600 and DPA.