What the Housing Market Needs Now, Posted by Bill

What do consumers need to get back into the housing market? Confidence. Talk in Washington about the MID and onerous 20-percent down payments undermine a recovery in housing.

  1. Thank you, Bill, for telling it like it is! Now, if Congress will just listen!

  2. Lou

    Bill well said!

    Lou Costanzo

  3. Jim S

    With all the concern over this and that, why do we consistently turn a blind eye to one of the ‘roots’ of the problem? The banks should be held responsible for some/most of this mess. I haven’t seen a lot of press on the banks generating phony loan documents, just one short segment on 60 minutes. Frankly that scares me and it reflects on the RE business. If you want to be considered more than one step above a used car salesman, you NEED to be more vocal and do the right thing for your customers, the home buyers.

    Toxic Loans were a blatant disregard of consequences. While the bankers are being bailed out by the tax payer, the home owner and the ‘Market’ are getting hammered.

    Now that we are in the middle of this giant mess (that has not come to a head yet) the banks are committing another economic blunder! REO! They are going to dump large numbers of there holdings on the market at distressed price points.

    Unfortunately, most of your ‘Realtors’ can’t differentiate between what is ‘distress’ and what is ‘The Market’, they are two distinct things. I keep hearing from your ‘Club’ that these sales contribute to establishing the market. I say; if you let that happen, it will only exaggerate the problem, drive the value down and make recovery that much slower.

    I look at these properties, many of them are trashed, appliances torn out, holes in drywall, abused by the evicted homeowner and sold as is. In short, these homes should NOT be compared blindly to the rest of the market by your members and the members of the appraisal community. It is the Realtors job to educate the buyers about the difference in value.

    Imagine millions of undervalued and distressed properties on the market that will go into the record books as sold with NO asterisk attached. Even the automobile industry has to declare if a vehicle has been in a flood! You (Realtors) are quick to point out “location, location, location” or “close to schools”, etc. Come on NAR wake up! Walk the walk or go work for Honda.

  4. Michael

    Let’s look at all of the parties out there to blame. The banks are certainly at fault, but they are only one in the string of many.

    1. Federal Government – Development of programs to provide home loans for people who did not qualify to receive them, resulting in artificially inflated housing prices, which are now only normalizing.The government continues to toy with supply and demand for housing, which will inevitably result in more pricing issues in the market and further instability. Housing must generally drop another 15% until it normalizes with historical averages. See:


    2. Real estate professionals – Many fraudulent real estate professionals provided advice to buyers under the concept that “housing will never go down” and “you should buy now because if you don’t, prices will be higher next year.”

    3. Appraisers – Generally, since they were in cahoots with real estate professionals and mortgage brokers, their inherent conflict of interest resulted in phony appraisals that were too high, simply set to “close the deal.”

    4. Mortgage Brokers – Their goal was to close as many loans regular and particularly jumbo loans, as possible, with blatant disregard for credit worthiness.
    5. Banks – you’ve already covered this well. Again, in cahoots with appraisers and real estate professionals.

    5. Banks – You’ve covered this well.

    6. Consumers – People who had no business owning houses were provided with financing, “no strings attached.” House ownership is not for everyone, a good segment of the population should be renting, due to their financial condition.

  5. Cari Snyder

    Some banks, such as BB&T, have no programs for helping borrowers lower rates and payment amount. Something has to be done to help borrowers when the mortgage is not a Fannie Mae or Freddie Mac. Mortgage Insurance on top make the payment too expensive. The bank BB&T will not eliminate the Mortgage Insurance even when the original ratio is less than 80%/20%

  6. Samantha

    “If you want to be considered more than one step above a used car salesman…” “Walk the walk or go work for Honda.”

    You can share your opinion without being RUDE. It’s completely unnecessary to trash an entire profession during your little rant, Jim.

  7. James Pierce

    I have always felt comparing distressed properties to non distressed properties is a mistake but very few have agreed with me in the past. Is this thought changing?