Orderly Markets are Key to the Housing Crisis Abatement
If the Speaker of the House, Pelosi, would do the same caliber of work as she does being a grandmother of five, and if Congress would take a time out from the partisanship we would have a chance to address the problem.
Do you know what the real problem is after all the hype of the credit market seizures and floundering banks? The real problem at the end of the day is the excessive housing inventory. Yes there may be many other issues in between but this one shows the door to the future and ultimately to a recovery. Harry Homeowner and Friends are the ones that will be buying up the housing inventory one by one over the next several years. If money market accounts are breaking the buck, and the stock market is eviscerating their savings and 401K’s before their eyes, the chances of the inventory level improving at some point is nil.
Yesterday our Full Service at The Negotiated Solution had a contract for a moderately priced condo in excellent conditional fall out. The buyer was due to close in five days but after seeing the S & P 500 drop 8.9% and the Dow plunge 770 points he panicked and called his financial advisor. The advisor said not to buy anything in this market regardless of how much you like the property. Now you see the problem. It’s a confidence issue.
Perception is becoming reality on Main Street even if it is just fear based and not reality. If people don’t feel comfortable that their money is safe in their bank, and they are scared to death of financial loss or job loss, we have a massive problem in housing with no cure.
The government is on the right track but we don’t need perfection at this time. We need anything and everything that will constructively restore order and bring down the credit spreads so banks will lend again.
Please write your Congressman and tell them it time to get on board for the middle class and to stop preaching false hope and partisanship. This is a time for action and nothing else. Properly laying the foundation to address the excessive housing inventory is the end game.
GHunter
March 16th, 2010 at 3:29 pm
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