Think.
That is one word I grant you. But, sadly, something fewer and fewer people seem to be doing when it comes to critical analysis of the near term prospects for the real estate market in the U.S. (And, yes, I know the real estate “market” is a patchwork of many markets dotted across the foreclosed landscape, but I am talking about the overall health of the entire industry and not just one or two isolated areas.)
There is so much wishful thinking that is not fact based, that every time I read a brief story quoting figures showing a meager “recovery” in the real estate market in one place or another, I can usually find, often within hours on the net, posts and articles proclaiming the end of the real estate slump in the U.S.
Now, think: While the government is apparently ready to announce the official end of the recession as we know it—jobs losses continue to mount and no end to that is expected anytime soon from anyone with a real brain.
Now, think: As more and more people are thrown out of work or unable to recapture a place in the job market–which is what the government is also predicting—does this REALLY sound like a climate that can nurture meaningful recovery in the real estate markets of the U.S.?
Now, think: With hundreds of thousands of mortgages set to reset over the next several months to much, much higher interest rates, does this REALLY sound like a healing process is underway?
Now, think: As the $8 thousand dollar tax incentive for first time home buyers is set to come to an abrupt end, and no sure thing it will be extended or inflated or both, does this REALLY sound as if there will be a growing stream of would-be home buyers just waiting in the wings?
Now, think: With commercial real estate mortgages on the rocks and soon expected to start showing up in, perhaps, record numbers, does this REALLY sound as if progress is being made to repair the badly broken real estate market in this country?
I’m not trying to rain on anyone’s parade…really I am not. But I AM trying to point out that the parade is still very premature and its planned route greatly uncertain.
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Related posts:
- Thinking About Skipping the Home Inspection? Learn from the Real Estate Horror Stories!
- Mortgage Fiasco Credit Crunch Spreads To Best Borrowers
- Thinking of Refinancing? Consider holding out for Rate Drop
- Commercial Real Estate in a Crystal Ball
Article Author: Charles FeldmanCharles has written 179 articles for us.
Visit Charles's Website: http://www.thefeldmanblog.com
Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.
Joshua Dorkin
{ 4 comments… read them below or add one }
Charles, I have to agree with you. It’s still too pre-mature to make the analysis that the economy has turned. Many lenders are still holding forclosed properties waiting for the market to turn, and people need jobs to buy a home…
Charles, I THINK that was a well written article.
I think some markets will recover MUCH sooner than others. More specifically, I believe certain SUB-markets of markets will recover sooner than others. I’m not sure the residential sub-market is going to recover anytime soon.
Charles I could not agree with you more. The worst part is that the more lies they throw to the American people the more the American people seem to believe them. I got one thing to say to everyone who still is waiting for magic to happen from the government and BIG BANK. WAKE UP AND SMELL THE COFFEE. There is only one way to turn the markets around. Put the power into the people’s hands. Take action, be proactive. Fight for what belongs to the people stop having the politicians constantly give money to the banks. Make the banks PAY!!!!!!The power has shifted in the homeowners hands, they just DO NOT KNOW IT!!!!MAKE THE BANK GIVE YOU EVERYTHING YOU WANT
Great post! We need to start talking about the economy and the housing market like adults and understand the role of government and the state of the REAL economy.