Read this and just nod your head.
As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.
When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.
“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity. via the NY Times
Translated: Buyers are not stupid.
They will not overpay for such a big purpose unless they feel that they are making a long term decision that they can re-coup. We need realistic prices for a realistic market to emerge devoid of government intervention and manipulation.
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Yep, that's exactly what I said a few days ago to another post. Artificial props to the market keep creating these false indicators of recovery. Just let it sink all the way to the bottom so that we can start to truly come back up.
Tom,
You know how I feel about government intervention it's nice to see the liberal NY Times talking about the need for government intervention to cease. Don't worry they'll find a way to get there dirty hands in the market. I hope that they don't but that will take some major effort.
It’s a hard pill to swallow but the tax credit definitely seems to have only delayed the inevitable. Our real estate office is seeing the worst September pending sales in years. Letting prices return to normal level is going to be necessary before we’re going to see a sustainable rebount in the housing market.
I feel that in certain cases the Government intervention should be removed. Our real estate is going through its bad times but i hope that the situation gets stablised and gets in its proper working.