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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (7968)	2/3/2012 10:02:40 PM
From: Sdgla	1 Recommendation Read Replies (1) \| Respond to of 85487

IMO its not that no one needs or wants a home. Qualifying for a mortgage is not something many can do at this time. The government needs to let the process happen.. the market will cleanse itself if those that cannot afford their homes move out and rent. Not sure what demand your asking about.... food clothing and shelter are still primary needs that drive demand. I still maintain these are required : Message 27885612

To: Steve Lokness who wrote (7968)	2/3/2012 10:36:28 PM
From: Bearcatbob	1 Recommendation Read Replies (1) \| Respond to of 85487

"So the lack of demand that has been fueled by housing in the past will be replaced by what? Serious question; where do you see demand coming from?" Don Coxe talks about this and indicates that the demographics of the country are a huge part of the problem in that demand is inherently less. I do not know how this jives with the "new household formation" data. Somewhere along the line the housing boom to house the baby boomers has to go a bit bust as the boomers move through the system. I think a bigger problem has to lie with the loss of home equity when housing prices fell. This removes a lot of buying power from the system in loss of home equity lines. The market for housing has to clear. I have been involved in the sale of 3 houses in the last 4 years due to a death in the family and us moving. The bottom line was - when I dropped the asking prices to the market the houses sold. We sold ours when others around us did not because they would not meet the market. It may be painful - but the market must be met. Many simply do not want to meet the market. I do not know how the foreclosure market works. I suspect the condition of the home deteriorates rapidly and the homes become unsalable. I know one person who buys houses cheap, does a refurb and sells them for a nice profit. Bob