Housing Market at 50 Year Low

If you are interested in the current housing market and wish to read more, an excellent place to look is Harvard’s Joint Center for Housing Studies, which just this week came out with the best study that I have seen. The study says that the housing market has not been this bad in fifty years. Again, the report addresses the national problem.

It is a little stunning to see the map showing areas where permitting is down by more than 50%.  Nonetheless the report notes the historic ability of this market to spring back and lead economic recovery.  It says the forecast over the long term remains very good.


2 Responses to Housing Market at 50 Year Low

  1. dotan says:

    The forecast over the long term remains very good? Then why do the super geniuses in Washington want to spend US$300 billion bailing out so robust an economic sector?

    Why am I being asked to subsidize speculators and irresponsible loan officers?


  2. northwestlaw says:

    Good comment! I get few comments but they tend to be good ones. What kills me is that this situation could have been avoided by even lax regulation but it was decided to just turn a blind eye.

    It is mind boggling that there would be no regulation of an area that was critical to the economy and was historically was full of scandals and corruption: mortgage lending and securities. I suspect that the money is justified by saying that we need to save the economy, to pull it out of recession. It would have been so much cheaper and less painful if they had just made some effort to oversee the wall street people when they were selling packages of subprime mortgages as securities.

    At the other end absolutely no effort so far as I know was made to police the people who were convincing and often lying to homeowners about these subprime loans. I have a dozen or so cases where people were outright lied to and defrauded to get them to take one of these loans.

    Another question. Why did they wait until now to consider this bill. Everything was known in 2006. The legislation is being considered too late for many, perhaps most people.

    Bush gave $30 billion to Bear Sterns. I suppose there was some sense of guilt by some people for doing absolutely nothing for the people who were actually losing there homes. This of course means more debt for the government when it is already severely in debt. It’s a tragically avoidable mess. But look on the bright side. You’ve already spent a trillion dollars for a war for no purpose which they want to continue forever.

    I suppose as long as we are wasting vast amounts of money we might as well waste a little on citizens who are not government contractors.

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