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
Showing posts with label high speed rail. Show all posts
Showing posts with label high speed rail. Show all posts
Tuesday, August 31, 2010
Monday, April 19, 2010
High Speed Rail
High Speed Rail remains an unknown in the Peninsula Real Estate market. It has the potential to impact homes and valuations along the rail corridor.
There is the possibility that property could be seized by eminent domain if the current corridor is widened. There is the possibility that the train could go underground throughout portions of the Peninsula leaving real estate generally unaffected. There is the possibility that the track will be elevated. There is the possibility that the project will be over budget and will not happen. The reality is that no one knows at this point what will happen though the public comment period may give a bit of insight into this. Regardless, this is an important issue to keep apprised of on behalf of all Peninsula real estate owners and especially those who have property abutting the current rail corridor. As more information comes to light I will continue to write on this subject.
There is the possibility that property could be seized by eminent domain if the current corridor is widened. There is the possibility that the train could go underground throughout portions of the Peninsula leaving real estate generally unaffected. There is the possibility that the track will be elevated. There is the possibility that the project will be over budget and will not happen. The reality is that no one knows at this point what will happen though the public comment period may give a bit of insight into this. Regardless, this is an important issue to keep apprised of on behalf of all Peninsula real estate owners and especially those who have property abutting the current rail corridor. As more information comes to light I will continue to write on this subject.
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