Please President Obama-Stop Helping us!

I was a Realtor in the mid 1980’s when the values of homes in the Portland area dropped.  Interest rates topped out about 19% and then quickly began to go down.  In early 1990, everyone was excited because interest rates fell below 10%.  People were rushing into the housing market because interest rates were so low.  Housing prices also began to rise. You could get a loan for the first time above 90% of the purchase price.

Today, interest rates are around 5%. Some new construction banks are offering rates as low as 4%. Home values in the Portland metro area, however, are continuing to fall an average of 1/2% a month. . In some areas this number is higher.  How much lower does this need to go before the consumer will happily enter the housing market? 

Well, if I had to guess, I would say well into next year.  If we want a quicker recovery, then President Obama and Congress need to stop “helping” the economy. Cut taxes and give all new home buyers the $8000 tax credit and that would be sufficient to jumpstart the housing slump.

I told you the story about the real estate market in the mid1980’s because there was no stimulous package to bail out the falling housing market.  All by itself, and rather quickly, the market adjusted and then began to rise again.  We live in America-the land of opportunity.  With opportunity comes risk. We  don’t need to be treated like children who need mom and dad to get us out of trouble.  The market will adjust on its own.  Please let the market adjust without any more “help”