Waiting for a Real Estate Market Recovery?

Are you tired arguing with people about what really caused Real Estate collapse, and more importantly what policy should be implemented now? Tired of fighting about the role the Government should take? Let me be brutally honest ….

The people arguing for the Government to completely get out of the way are generally more correct and closer to the heart of the solution, yet it is a naive representation of the current reality. The people arguing for the Government bailouts and control in any form are either not well informed or have something to gain from their argument. The sad truth is that too much of social engineering has been forced on us with anti-capitalist Government policy through the financial system. And we now begin to see the real damage of too much Government meddling in our everyday lives, including the Real Estate Market. Just as the real players with the help of the policy making in the back rooms drove Real Estate prices and volumes to their heights, and then suddenly slammed the brakes to have the whole market almost collapse, it would be up to the same players to gently press on the accelerator once again.

If you really talk to anyone in the Real Estate Market trenches, they will tell that it is almost impossible to refinance, obtain loans to close sales, and conduct business with a common sense flow. It is all by design, weather intentional or not, the current policies tie the hands of our “free” market institutions to conduct the business in a matter required to facilitate efficient Real Estate Market.

By direct control or policy enforcement, today our Government fully controls the majority of Real Estate Market, and in such situation it would be up to only Government to provide the support required to get the market moving. This Governmental support must not be in the form of bailout, but in the form of untying the hands of lending institutions and allowing the Real Estate buyers and lenders to assume the responsibility for further direction of the Real Estate Market. By simply providing a somewhat looser yet still verifiable requirements to obtain loans, and implementing an optional Government backed mortgage insurance for currently appraised property values, re-establishment of higher trending sales in the Real Estate Market can be achieved.

Only correct re-establishment of pro-market based policies by our governing bodies will revive the Real Estate and the economy. Keep a close eye on the industry policy changes over the next few years, and get yourself set ready to participate in the Real Estate rebound when the policy starts to change in the direction of the free-market.