I think a fair number of people here expected the government to do something. The question still remains, how much and how soon. As it’s been seen, the nicer areas can hold out the longest.
If they can stop the flood of foreclosures, suddenly the dynamics change. As we’ve seen, people who can hold – will, even if it’d be smarter for them to walk. This will help create a price floor, and IMHO lead to a price drop followed by a long flat period until such time as wage inflation does catch up (which could be a long wait).
Clearly there is demand in the market, and aggressively priced homes sell fast. And despite the disbelief on this site, it’s been shown there is a lot of money out there for massive down payments. Shore up the number of distressed sellers and foreclosures, and the supply of aggressively priced homes decreases. Supply and demand takes care of the rest.
It’s an election year, they are trying to avoid complete financial collapse, and the typical person on a board like this is not the norm. We are the exception, expect to be treated as such.
I’m not saying it’s a good time to buy, but I honestly believe at some point in the future this place is going to be filled with people complaining how they’ve been waiting for 10 years to buy a home because they waited for something that never happened (due to bailouts, or other factors).
“That’s not fair” will be the cry; but we should all know that “Life isn’t fair.”
I may not like it; but I fully expect to see people continue living in million dollar homes who clearly can’t afford it. They’ll lose their 2nd and 3rd homes, and be house poor in the primary.
