Secondâ€¦.I am confused by all the thumbs down. I respect Gingerâ€™s collective contributions on Trulia, and think she asked a good question. The responses reflect the personal viewpoints of the responders. I am a bit confused why one or more persons have found every answer â€œnot useful.â€
As Catherine indicated in her response, it isnâ€™t just about interest rates, it is about buyer confidence. The real estate market hasnâ€™t been much the hot topic in the political arena, although it does hit the top tiers for the news media and internet searches.
When the woes of the real estate industry and mortgage industry domino to more substantially impact the economy at large, it will become a bigger topic in the political arena. Just like rapid appreciation in real estate markets fueled a wealth effect that caused a boost to the economy and influenced consumers to spend, a slow down in real estate will have the inverse effect. If (and when?) financial markets are impacted, credit markets for auto and credit cards are impacted, and consumer spending cuts back, it will capture much attention on the political front.
How our real estates markets across the country collectively perform ultimately plays a huge factor in our economy. We must travel further through the current cycle in the real estate market before the impact of its reach into other sectors of our economy is felt. It is that bigger picture that will garner greater attention as we progress through this election year. Itâ€™s good that it is an election year since that places response and action plans in high gear. Overall, I think the influence of the election year will be positive. I expect more talk about the economy as our election campaign continues, with more discussions about economy and the role real estate plays in our total economy. I expect consumers to feel more confident as a result of an administration change. If it were just about the interest rates, we wouldnâ€™t have buyers sitting on the sidelines right now.
Watch for changes in Mortgage reform. That will have a huge impact on getting this thing kick started again. Nothing is going to be easy or fats on this one but i think 2009 looks pretty good over all.
"The Real Estate Doctor"
Sure the Treasury Department and Fed Chairmen Bernakke
control the interest rates. But the interest rates are at 40
year lows and the consumers still have no confidence. Contrast the
8 years under Clinton and the current 8 years under Bush.
If the right party gets into office they have the power
To change opinion and perception. In ways that may not be apparent.
Look at what Bill Clintonâ€™s administration did in 8 years. His government started
out with a huge deficit and when he left office there was a surplus. Bush strated out
with a surplus and now we are in a biggest deficit in our history.
The government has to be for the people not the corporations.
When you start lifting up the middle class and the
UNITED STATES starts feeling positive and moving in positive
Directions, only then it will have an effect on every market.
The housing industry has tentacles in so many areas of our economy,
when its starts moving, so does everything else.
There is a lot of pent up buyer demand, not only for homes but
environmental products to save the earth. Canada and other countries
get it, they are way ahead of the US coming to the table with ideas
to go green. If people want to move the markets they need to start
consuming products that are green and quit buying products that hurt our
Earth and enviroment. Going green is a way of saving the earth and
stimulating market growth.
I don't personally think the election will have much of an impact, because the private sector (builders, big lenders, etc) and the Fed (which is somewhat independent) are the biggest players, and any changes to the GSEs by the next administration will take a while to take effect.
If I can help please contact me at firstname.lastname@example.org
Presidents usually inherit more than they influence an economy.