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Martina Ryan's Blog

By Martina Ryan | Agent in Queens, NY

THE AMERICAN DREAM IS GETTING FURTHER OUT OF REACH

Pending home sales fell 11.6% in April and is down 26.5% from April 2010. 

Tight credit seems to be a major factor that is hindering the housing market recovery. 

The US economy seems to be caught in the proverbial Liquidity Trap where people with funds to invest are unsure of market conditions and are waiting for prices to drop further and lenders are reluctant to lend due to the historically high default rate of past years. 

Sellers and buyers are stuck in an economic cul de sac and realtors all over the country have to go that extra mile to make that sale.  It's a far cry from the good years where inventory was short and property sold before the ink on the listing agreement was dry.

Now congress is proposing to decrease the Mortgage Interest Deduction on tax returns from 33% & 35% to 28%.  This will undoubtedly put the American Dream further out of reach for the average family in middle America and have a huge effect on our ability to do business.

Coupled with this beginning January 1, 2013 ObamaCare imposes a 3.8% tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.

There will be a closing of the Frontier like in the wild west of the 1890's and it will be a on-way ticket back to a declining housing market.

 http://martinaryan.listingbook.com/


Comments

By Chris Blasic,  Fri Jun 17 2011, 22:56
There is always opportunity no matter how bad things seem. If the market declines anymore that is an opportunity for buyers and investors that will always find a way. Stay positive all is not lost!

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