The problem is that Congress fell asleep at the wheel while driving for over a decade, and now they'd like to quickly and painlessly whitewash away all of the problems that they helped to create. Unfortunately, that's not going to happen. The market correction could be quick or less painful--but not both. The market would correct itself more efficiently if they'd stop interfering.
Congress has to make a Machiavellian choice. Somebody has to lose something: either more people will need to lose their homes, or more bank investors and bank staff will need to take losses. Congress wants to have their cake and eat it too, but they can't have it both ways.
Besides, Congress keeps on targeting the wrong problem. Most of the problems in real-estate (residential or otherwise) will self-correct relatively quickly once Congress does something significant to address the jobs issue. People who have good jobs and who are making good money tend to buy more stuff--including homes.
Some people in Congress (as well as in the Obama administration) have wasted a lot of resources (time and money) to fight investors, appraisers, and other real-estate pros. An investor typically will hire an agent to buy/sell a property. That investor also might hire an inspector, an appraiser, a surveyor, 1 or more attorneys, a closing or escrow attorney/company, CPA, and 1 or more consultants (typically on larger deals) to help that investor to conduct appropriate due diligence. Plus, that investor also might hire a project manager, GC, and stager to help transform an unmarketable property into a marketable one. That's at least 13 (more likely 20) jobs right there for 1 project.
That's only 1 variation on that theme. One could build out another variant starting with an agent instead. The point is that stupid legislation, that's only meant to score political points, might dupe the masses, but it won't accomplish any real tasks. That's ineffective management, and it would get anyone else working in corporate America canned. So we should demand the same kind of results from our leaders as we'd expect from ourselves. Make them EARN that tax revenue.
Congress debated for months about claw-backs of executive compensation. Why weren't there any discussions about claw-backs on the compensation for do-nothing (or ineffectual) politicians?
Keller Williams Realty-Elite Partners
2715 Forest rd, Spring Hill, Fl 34606
352-688-6500 cell 516-449-6786
If Congress finally does something to fix the mess created by their lack of oversight, prices could spike up.
There is talk right now about requiring lenders to modify mortgage to current market value. Should that happen there may be a smaller supply of owners who are simply just walking away from huge sums of negative equity.
Something clearly must be done or some analysts expect real estate prices to decline another 25% in a year.
All my best
Alma Rose Kee, PA
Future Home Realty
The real estate market is changing now.....many experts see the market as "bumping along the bottom." What this means is that there will be slight increases and decreases in pricing and activity. Just last week billionaire Warren Buffett predicted a market rebound for residential property by the end of the year. The good news is that the worse of the housing crisis is behind us.
As far as buying, we advise buyers that the only real mistake they can make is to not remain active, collecting information, searching, and comparing property and neighborhoods. The best approach may not be looking to buy right now but keeping your options open should the right opportunity present itself.
Great deals are still out there for those that are active and ready to move quickly.