Thursday, June 11, 2009

Nothing Is Working to Stabilize the Housing Market. So How About....

Nationally, housing prices are still falling, foreclosures are rising, and there's still an over supply of unsold new and existing homes.

Mortgage rates are rising, putting into jeopardy pending contracts w/out ratelocks. Refi apps are going down. For the past couple of months, nearly 50% of all pending existing home sales have been foreclosures or short sales. Clearly, nothing is stopping the slide in price declines (except in certain nabes here in Nirvana) and not enough buyers have leapt off the fence. So how to reinflate the bubble?

A NEW HOMEBUYER'S TAX CREDIT. $15K FOR EVERYBODY!

Related Reading:
Rut-roh.
Zoinks.

8 comments:

Randy said...

Pretty sure I'd vote aye but it didn't pass the first time.

Anonymous said...

It didn't work the first time. But now unemployment exceeds that projected by the banks' "worst case" stress tests (ie in fantasyland). Foreclosures haven't stopped w/Obama plans. Something's gotta give.

Debaser said...

What's to stop sellers just factoring this into their selling price if it passes? (i.e. listing 5-15k higher, depending on how greedy they want to be)

Anonymous, too said...

Holy Sh*#

Buyer said...

debaser:
"What's to stop sellers just factoring this into their selling price if it passes?"
Seems likely to happen here. & sellers could also ignore that 30yr fixed will shortly be 5.8 according to CalculatedRisk. Historically low but a full point higher than earlier in the Spring. That changes buying power.

downtownenvy said...

Can't we please let markets reset themselves? Trying to prop everything up by throwing money at it is not going to help.

You just know that there are already first time buyers here in town that might already be living in a property whose value is about to drop again. So now we are encouraging more people to do this? Sorry- just seems like a bad idea to me.

Seriously said...

Zillow: 1 in 5 homeowners is currently underwater.

I'm going to step out on a twig here and suggest this includes some who just signed contracts here this Spring.

Anonymous said...

Looker
Seriously, get thyself to the hospital pronto! C'ville has a good one. lol