It was easy to draw a graphic of the light at the end of the tunnel. Because this tunnel HAS NO LIGHT at the end of the housing tunnel. So solid black as far as you can see for years.
In fact the end of this housing tunnel is so far away, you and I may never live to see any light at the end of the tunnel.Thats not as ridculous as you "forever optimistic" think and will tell you why, and you seriously think about it.
We know easy credit Created the "big boom".)(bubble busted with recession) We also know tightening credit now to an impossible few, is creating biggest "ongoing perpetuated" bust in history.
Nobody qualify's for a loan that is a really an eager "buyer" seriously interested thinking "this is the time to buy".The usual risk taker speculators, with his life savings in a mattress, DELIBERATELY frozen out of speculating on a few homes, locked out of the credit market.
Is referred to by government legislators etc as an evil "flipper."
That leaves only those: .......renting and have a steady job, who should be jumping at buying homes, say, NO, right now this job is too insecure,and can not take a chance on happening to us, totally frightened, super afraid of what we see is happening to our friends who bought homes. We see nobody into investing in a home who is coming out top notch. Besides, Renting is super cheap and super availability all over the place right now, and homes prices are going down, even further, why buy now?
That's the buyer side. Dried Up to Nothing. Ask a real estate agent.Government give always, not saving the day. Over 100,000 government grants reported being investigated by IRS as fraudulent. (already).
Lenders and government afraid if lowered principal (only thing that will work) the huge per centage of home owners now underwater would all want their mortgages modified.
Exactly what would happen.
Therefore; expect lots of talk and press releases by politicians and lenders press agents.
In reality, only a "tiny" per centage of loan modifications filed, be qualified, by the way they set it up. So expect no real help.
"Sorry, you do not qualify, you make too much, or you make too little, You are too unemployed, or you are too employed..
Your payments are behind, or you are not behind disqualify's you,
Your home is to much underwater, or your home is not enough under water. You do not quite qualify. Sorry.
.....and of course if its a second home or a rental, they wont even look at your paper work for a government assistance to
not let it foreclose.
Who is left? Not many, professional financial people with deep pockets. They are about tapped out and will be staying out of market now too as they suddenly now see further drops coming. Another 10% drop means foolish to buy now. Watch sales drop to nothing.
Plan to buy late 2011, early 12,
Get your adding machine out. That's how long it will take with further paralysis of sales, to dispose of what huge numbers of foreclosures are coming.
Government giveaway does NOT make up for impossible credit restrictions on investors etc who are the very people who ALWAYS run home prices up.
Without his optimism, and assisted enthusiastic participation, sales stagnate.continued on PART TWO No light at the end of the "home price" tunnel. Now lets discuss OVER SUPPLY. Over Supply Of Homes Dumped on Market, Part two >
