Quite simple. To make a loan payment, you need a job. To make a large loan payment, you need a good paying job. If the number of jobs, especially good paying jobs is declining, stagnant or growing - then the number of potential buyers will do likewise.
With Obama unchained, the number of jobs will, I predict, decline or stagnate. Same with the housing market.
Of course, that will not be true of every area, but nationally, and this is what my current crystal ball says, that will be the trend.
Oh, contrair. Have you been following the news? It sounds like the Obama Administration is pushing for some relaxed lending rules to help spur the mortgage and residential realestate market. Sound familiar?
Specifically, they want fairness and have suggested that banks are discriminating against "low income" and "minority neighborhoods". Now does it sound familiar? No?
How about this. Freddie and Fannie will assume high risk mortgages under a special program if they can pass legislation to encourage banks to take higher rists? What about now?
We may be too stupid to govern ourselves as a nation anymore. We never learn.
“To make a loan payment, you need a job.”
To make a loan payment, you need a loan. To get a loan, you need a STABLE job AND an acceptable credit rating. If the loaning institutions are reputable, they won’t frivolously lend money to unqualified buyers. If unqualified buyers are not “buying” houses, then...... And if your job has questionable stability/longevity, then don’t be stupid and over-extend your debt capacity. IF Obama has this “dream” of granting home-ownership for everyone by raising taxes, then the bottom will fall out for all of us.
Further, a part of the premise of this article is incorrect. The housing market has not made recent improvements, as per a number of folks I know in real estate sales (and related industries) nationwide. Many of the positive stories the media promoted prior to the election appear to be nothing more than politics.
Added to this, the full implementation of Dodd/Frank is going to mean further restrictions on lenders which translates into even fewer sales.
Yeah, the DC market will stay high, thanks to all the govt jobs paying huge salaries for doing NOTHING!