The United States taxpayer will pay for the problems of few. There is not a national market for homes and no national price for homes. We are not a socialist country. Thank God. The market is not standardized across the States this is what we call a free market.
The beneficiaries of taxpayer charity will be mostly concentrated in five states - California, Nevada, Arizona, Florida and Michigan. That is not because the subsidized homeowners are poor, (Californians with $600,000+ mortgages are not poor), but because they took on too much debt, often by refinancing in risky ways to cash out thousands more than the original loan. A lot of Union Workers in Michigan have a reason to fall behind. I do feel sorry for people who have lost their jobs. I have also seen a lot of agents leave and move on to more lucrative careers . The strong will survive or move to where the jobs are.
Nearly all sub-prime loans were for refinancing, not buying a home. A lot of foreclosed homes were the result of Home Flippers looking to turn a fast buck. You don't pay a capital gain on borrowed money. This was a risk for the mortgage companies as well as the home buyer's. We can also thank trendy TV shows that made it all look so easy. Homes financed at with creative ways to beat PMI and over 100% financing to buyers that normally would not qualify for a conventional mortgage.
So what's happening now? By looking at sales, you can see the free market is working very well. Sales of existing homes over the past year have soared in four states where home prices fell the most. Reducing the inventory of unsold homes, foreclosed or not, makes it easier to sell remaining homes and thereby works to arrest falling home prices. Falling home prices are not the problem, they're the solution.
The market will tend to fix it self given time and the average home buyer will pay the average price whatever that may be. We all, are looking for a bargain and there are plenty of good buys out there now. It is definitely a buyers market around here in South Alabama. They say that nationwide 93 % of all home owners are responsible and pay their mortgage on time. I don't think the responsible home owner should pay for the 8 or 9 % that do not pay their mortgages.
IF THE HOME IS PRICED RIGHT IT WILL SELL. I believe that with all of my heart. I trust my gut which is normally right. As of late my gut feeling is that we are heading in the wrong direction. I am against all of this massive spending and do not believe that more government can fix this problem. Drop Capital Gains and let the housing market sort it self out. Keep the interest rates low and try to keep inflation to a minimum. The Government should stick to running the military and protecting us against Terrorism. Leave the Banking to bankers, the home selling to Real Estate professionals. I do not believe in Bailouts or PORK projects.
Lets roll up our sleeves and get back to work.
Are you looking for a real estate professional who knows the FORT RUCKER and Enterprise Alabama Real Estate market and can get the results you desire?
Let me put my knowledge, experience, and dedication to work for you. Give me a call today,
As you move towards a possible decision on selling your home, or purchasing a new home in the Wire grass Area, I hope you'll contact me. Let me know if I can be of further help in the process.
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My Fort Rucker Real Estate Websites: www.ruckerpcs.com / www.c21Rucker.com / www.RUCKERHOMESALES.COM / www.Ruckermove.com
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My Daleville Alabama Real Estate Website: www.DALEVILLEHOMES.COM
Please forward to anyone who may be moving to Fort Rucker in the future.
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Sincerely,
Karina Morgan
REALTOR, ABR, GRI
CENTURY 21 Regency Realty, Inc.
(334) 477-2694
www.RuckerPCS.com
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