Everything in life seeks equilibrium and balance. It doesn’t matter what it is... everything seeks balance. If you work too hard you will get sick and you will be forced to rest. If you don’t eat you get hungry. When the government manipulates affordability in housing markets it throws off the true market equilibrium. Fundamentally the government was attempting to create a new equilibrium where are greater percentage of the population were home owners. We now know that though well intentioned this push had severe consequences.
I have written a fair amount on this subject before. However the attached article is a compelling reminder that false supports are preventing us from finding the equilibrium. Letting the market correct will bring real stability back into the market. Yes, prices will likely be lower but the footing will be firm. False supports will continue to promote indecision in the marketplace and the reality is that the market is seeking a true equilibrium in spite of these false supports... hence the drop in sales numbers.
See the URL below:
http://money.cnn.com/2010/08/31/real_estate/federal_housing_programs.fortune/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29
Desk of Zach Trailer
By Lanny Berg
About Me
- ZachTrailerGroup
- Palo Alto, Bay Area, CA, United States
- Zach Trailer brings unending passion, energy, and professionalism to real estate. A focused practice serving Palo Alto, Menlo Park, Portola Valley, Atherton, Los Altos, Los Altos Hills, and Woodside, Zach has has the privilege of serving his loyal clients. He is a trusted Counselor to Buyers and Sellers. He is an adviser to real estate Investors, and an Income Property Specialist. Zach works out of the Palo Alto office of Coldwell Banker. DRE # 01371338
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