Market needs correction, not quick sales
Letters to the Editor
By Inman News, Tuesday, November 11, 2008.Re: 'Realtors introduce stimulus plan' (Nov. 10)
Dear Editor:
This is a shortsighted recommendation. The only objective I can see here is producing some quick sales at the cost of preventing the necessary market corrections from taking place. Providing subsidies in the form of interest-rate buy-downs essentially replicates the problem that started this mess, i.e., the ability to borrow money at less than market rates (that would otherwise reflect the real cost of funds and comprised of time value of money + risk + overhead). These proposals prevent the reevaluation and corresponding prices of real estate. "Pent up demand" is another misnomer here, as it exists only in situations where supply is limited. The pent-up demand referred to here is attributable to the disconnect that exists between buyers' expectations and inflated values. It will be a slow process and should not be arbitrarily manipulated at the expense of others.
Ted Nohren
Broderick and Associates
Pinellas Park, Fla.
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Submitted by Robert A. Hulme on November 11, 2008 - 2:32pm.
I agreee with you Ted, in the long run, but we need something now, that will stimulate buyers into stepping up. The NAR is on the right track, it is going to happen, help make it successful, I am going to my best to let everyone know what we as a body are doing to help the consumer.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
robert@RobertHulme.com
www.UtahCountyRealEstate.us
www.UtahCountyHomes.ws
Blog : www.UtahHomes.ws
801-885-2586
Submitted by Paul Francis, CRS on November 11, 2008 - 2:37pm.
Buyers will step up when they feel the price is right. Las Vegas is the perfect example of this.
Paul Francis, CRS
Prudential Americana Group
www.LasVegasRealEstateHome.com
702.592.3058
Submitted by Peter J. Pike on November 11, 2008 - 2:56pm.
I too, agree with Ted. The idea is to do something that will bring prices into line with perceived value. This will happen, but, it will take time.
Submitted by Stephen Graham on November 11, 2008 - 2:56pm.
People fail to look at the snowballing effect of doing nothing. Buyers don't always step up; there is fear, or hope, of a continual decline. This was a huge lesson that should have been learned from the great depression. I would rather see trial and error, inasmuch as inaction is far worse.
Associate Broker | Buyer's Agent
www.realtown.com/BuyersAgentGeorgia/blog
www.georgia-new-homes.net
Submitted by John Rakoci on November 11, 2008 - 10:04pm.
The market does not need a floor of ice put under it. That ice will eventually melt and expand and extend the problems. The only reason I can see for such action is to put a quick infusion of dollars into agencies and agents. It will harm the consumer more in the long run. Without the infusion some agents and/or agencies may fail which will only make the survivors more viable and profitable in the future. NAR may need to cut some costs too. There is no need for the consumer to fund NAR by keeping an inflated membership in order to maintain an inflated payroll. Times are tough and the new administration may make them tougher.
Submitted by Susan Krancer on November 12, 2008 - 6:49am.
I love that "floor of ice"! What a perfect description of some of these supposed "fixes".
SK
Susan Krancer
REALTOR®
Liz Moore & Associates
Williamsburg, VA 23188
www.WilliamsburgGolfProperties.com
Submitted by Nick Chucales on November 12, 2008 - 4:14pm.
I believe Ted is very astute with his editorial, those that think the NAR and their think tank have any idea of what must be done to revitalize the real estate market must be ignorant. How soon they forget that is was the NAR and the same prognosticators that claimed “there is no real estate bubble” or that foreclosures were a regional issue at best. I wrote over 3 years ago that we were headed for a real estate melt down and I believe that the government would be best served by staying out of the mess they helped create.