This is not good news for the housing market
... at least not if you are potential seller
JoeUser Forums
Not great news for the housing market, at least not if you are hoping to or worst yet, needing to, sell your home in the near future:
(From Washington Times)
Overvalued homes discourage buyers
Quick summary (you can click the linked article to check out the original story...): buyers are still not feelin' it when it comes to the idea of buying homes. Prices are still, in the minds of most buyers, over-inflated and too expensive for what people are selling. Which translates into very bad news for the housing market, both for existing homes and for potential new homes.
This is a segment of the market that needs a boost and fairly quickly, but then again, if the government interferes, it must do so with money that comes from someplace, no? If they leave it to the consumers to settle, then consumers will certainly settle the issue, most likely via deflation in home prices and that is something that the government, or should I say the Federal Reserve, is likely to try to hold back and keep from happening.
I've written previously on who is at fault for the troubles in the housing market, so I'll keep to a short version here -- it's us. It's the buyers, the sellers, the realtors, the brokers, the bankers, and a long line that equates to all of us. We all let things spiral out of control too long, with prices that kept being driven up by people that had no businesses moving into the homes they were moving into, taking on the loans they were taking on, etc.
Now it is all of us that will pay for the mess. Will the Fed let the open market correct itself here? Or, will the fed interfere and artificially boost the market which makes it harder for them to get back out later on? Hard to tell which will be right answer, but I do hope they hit upon a right answer soon before the economy takes a much bigger hit for it. (Then again, if we really are about to put a Democrat in the White House, I'm not sure I wouldn't love to see a long, persistent and nasty recession there for them to try to fix. Better still, who really deserves the blame for this whole current mess? Haven't we had Democrats in charge of the Congress for a few years now? Weren't they supposed to be watching the hen house? It really must be their fault darn it!)
