Sellers too!
Until housing returns to 33-38% of gross income it will be unaffordable and banks won't make loans. IOW, sellers have no one to sell to.
Real Estate is going to decline at least another 20%, probably more since taxes are going up and incomes will go down as a result. All the govt is doing is prolonging the pain.
That all sounds plausible...but what do you suggest for those who bought what they could afford and made reasonable down payments? If Glenn is right someone could have paid $200,000 in 2006, put down $40,000, and STILL be upside down for 15 years plus...
Sellers also can’t sell if they owe double what the home is worth unless they wish to deplete all their savings and investments, which aren’t worth all that much now anyway.
Not saying gov’t should prop them up, but to act as if only the irresponsible will suffer is wrong.