How to Fix the Housing Market
The economy is in such upheaval that no one seems to know where to turn. Everyone has their own thoughts and opinions, but which one is the right one and why? There is no way to know for sure how to get out of this mess, but the old saying is true when it comes to those who need discipline; they need to hit rock bottom before they learn a lesson. Is the same thing true of the housing market?
The Market According to Neugebauer
Randy Neugebauer, the state representative of Texas has made it clear that he believes the market must bottom out in order to repair itself. Letting the market ride the waves and do what it needs to do will allow state and local budgets to balance out. Throwing money at it non-stop isn’t the answer, and with the huge inventory of homes that we have, there is no way that as a country we could throw enough money at it to make that reverse as of today or in the near future. So, why are we?
The bottom line is that Neugebauer may be right and there are more homes in the inventory in all states; more than we could ever handle in a year’s time. There aren’t enough buyers with enough money with enough buying power to buy them and rehab them fast enough to sell them. There are still plenty of real estate investors, but that doesn’t mean that they will move quickly. The other reason that Neugebauer believes that allowing the market to bottom out would be helpful is because when homeowners are making their mortgage payments they aren’t paying their taxes. Letting people hit rock bottom is the best way to let things be as they are, then find a new way to rebuild from there.
Who is Responsible ?
There really isn’t anyone who is willing to take responsibility at this point for anything going on in the financial sector. Everyone is pointing fingers at everyone else, and that is the real problem. Each department and each government official has to be responsible for anything they touch or do on a regular basis. The borrowers have to be responsible for their own decisions as well, and that means moving forward that you make a decision only when you are comfortable with it, not because someone tells you that it’s a good choice. Oftentimes we get caught up in doing things because we think that people want us to do them, or because they make it sound like a good idea, but deep inside how do you really feel? Always follow your gut, and when it comes down to it at the end of the day, the decision you made cannot be blamed on anyone else.
