Wednesday, January 07, 2009

Lawrence Yun Pleads for a Real Estate Stimulus

The real estate market has declined dramatically in the last couple of years. With Washington, bailing out various industries out left and right the real estate industry has lined up at the trough, pleading for assistance from Washington.

"A real estate-focused stimulus plan is urgently needed," Lawrence Yun, the trade group's chief economist, said in a statement. (AP 1/6/09)

There is already too much investment and too many subsidies of the real estate market. The government should not approve any real estate focused stimulus plan. The real estate industry has been discredited and cannot be trusted. Mr. Yun should be ashamed of his shameless shilling for the economic pariahs that are the National Association of Realtors.

8 comments:

DaveO said...

How about even more government purchase of loans, reducing interest rates even further (I belive currently a 30-yr conforming fixed is about 5.01% right now)? I'm sure that they'll push for that.

The trouble is, people that buy still-expensive (even after price drops so far) houses with low interest rates will have to sell at a loss in the future if interest rates rise (which they have to eventually; nowhere to go but up since they're so low now). Of course there's still downward momentum in prices as well even if the interest rates are further reduced.

Anonymous said...

How bout the government teaches people a lesson and lets housing fall to the right prices.

People need to learn to live without housing fever and using it as an ATM.

There is nothing wrong with renting. Let them rent!

Anonymous said...

Shut yang yunG you freaken pos.

If your pos organization not pumped houses into the stratosphere then we wopuld have had a normal housing market with inflatuion +1% appreciation over time. Now since house prices went up a huge amount house prices need to fall ALOT to get them down to affordable level again. So NO to ying yun's scheming proposal.

Donna said...

FHA expansion has led to the current fiasco, with the Fed left to buy all of the MBS and keep the mortgage market afloat at taxpayer expense. While I'd love to see a solution that addresses homeowner and foreclosure needs, throwing more taxpayer money against the wall will be good money after bad.

Anonymous said...

I WANT to buy a house. But even though I know I make very good money, the market is still ridiculously over-priced and out of my reach. Sorry Yun, but there is only one cure for getting the Real Estate market to get going, and that is realistic prices.

Media wage X 3 for median house. Not that difficult, now is it, mr. Yun? No government bailout needed.

Anonymous said...

I am a real estate agent and welcome any debate/response.

The thing that caused the real estate market to collapse is also the very thing that caused prices to inflate like they did.... Which is:

The glut of non-qualified buyers that were given approvals (anyone with a pulse) all at the insistence of Congress and ACORN.

Franklin Raines approved Fannie Mae's backing of these bad loans... most likely to achieve is multi-million dollar bonuses.

This flooded the market with buyers who were thrilled to "purchase"... what a joke... they had little to no money down and had questionable credit history.

They had NO investment in the properties, were not real buyers. Given that, when they defaulted they walked away leaving the taxpayer to deal with the mess.

The government backing of these loans occurred as they were written... it is not an option now to not take care of them. (Thank Barney Franks and the like for this.)

However... this mess has caused prices to decline to 1980's values. Interest rates are fantastic. Loans, contrary to media claims, are readily available to "qualified buyers".

The real estate market recovery is critical to the overall economic recovery of the country. Many industries rely on a thriving real esate market to survive. This includes any business that makes a living related to homes: From builders, to lumber mills, to retail stores like Lowe's and Home Depot... to all of the industries that deliver and transport the products. Throw in the appliance industries, the flooring industries, roofing, dry wall, etc...

It involves an amazing sector of our work force.... including me.

The media is perpetuating the fear and panic. Yes, people have lost their jobs, yes... we have problems to deal with.

But there are many, many of us who are still working, are still employed and will make it through this time with little impact.

To stay in rental out of fear of the future is not wise. Most qualified buyers who are currently renting are paying more for their rent... than a mortgage would now cost them.

In order to "jump start" the market, we need the first-time buyers to take a look and see what they can purchase, and consider purchasing.

Once this starts... those who are ready to move up will be able to... and the market will level out.

The Stimulus the industry needs is not for the taxpayers to dump billions into banks.

It needs tax credit incentives to get the fence-sitters off the fence.

It needs qualified buyers, with good credit history and a bit of a down-payment.

The foreclosure rate has many homes on the market at fantastic prices.... and I have put my "money where my mouth is".

We have purchased two homes within the past year... I think we have made excellent investments that are paying for themselves with their rental income.

And I expect to have the option of selling them within a few years (if we choose to) and making at least $50,000 per home. Because once this glut of foreclosed homes is off the market, prices most assuredly will float back up a bit.

There are fantastic deals to be had.

Take a look and see what your area has to offer.

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Laguna Realtor said...

We all need some kind of stimulus and for many of us it is urgent. The shock that the recession has given especially in the real estate market is not over as yet.