2009 – Footrace to an Unseen Finish Line
News about solutions to falling prices in Single Family Real Estate has been prolific and articles in the media and on the internet appear like mushrooms on a pile of manure. My opinion as to the long term solution to this problem has not changed. The only viable solution to stabilizing the housing market is for lenders to mark loans to the market as quickly as possible (with or without government subsidies), take the losses that result, keep people in their homes and move on. If they do not act, the market will, by continuing to fall until prices reach a sustainable level for homeowners and an attractive level for investors. Because of continued job losses, affordability will continue to drop and then prices will drop and so on…
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