NEW YORK (CNNMoney.com) - Bipolar is what comes to mind when diagnosing the post-homebuyer tax credit market. There are two separate forces pulling it in opposite directions, and experts aren't yet sure which path the market will take.
On one hand, sales and prices are rising, indicating recovery. On the other hand, so are interest rates and repossessions, which most certainly do not. And then there are the millions of foreclosures that need to be sold but haven't yet been listed - so-called shadow inventory - that could derail a real recovery if they hit the market in floods.
The prognosis? Negative short term but turning positive by the end of 2010.
The market will come back one we elect enough republicans this November to control the Obambi administration and the democrat goons still holding office.
The real prognosis is this............... if the banks do not start lending to the millions of people that are making their house payments, but could use a little help, then we are headed to a real depression. The American people bailed out the banks, auto makers, unions, and other friends of barry, I mean barrack hussein obama, jr., and now we the former America (now United Socialist States of America) are being left out in the cold. Something is really wrong when people that make north of $100K are being turned away by their banks. Can anyone say "Entitlement"?
It's because the government and Federal Reserve is manipulating the market with incentives to buy, but the banks don't believe most of the people being offered incentives have the ability to take on a mortgage long term. It's what got us into this problem in the first place–a Federal Reserve holding down interest rates, and Clinton and Congress passing legislation to get poor minorities the "pride" of having a home–instead of them having the pride of earning one. We can't have it both ways: you can't prop up home prices, and make them affordable to young people and poor people at the same time. Home prices have been over inflated, and the bursting bubble and decrease in prices was the market trying to correct itself. Lower home prices would bring in more people to buy, eventually pushing prices back up, instead of everyone completely defaulting on their loans and having empty houses just sit there to be vandalized and squatted in. That's the worst scenario, because it drives down neighboring home values even further. The short sellers may lose some money, but that's what you get for thinking a home is something you buy and sell for a giant profit after just a few years.
Just wait until welfare stops in California. The foreclosure market will take a huge jump. The economy is fine though. Just ask this administration. They can spin whatever they want. People still are not back to work, there are still not enough jobs, and unemployment will be terminated. Good job, Mr. President.
"bi-polar" SMH -more like it ! I already lost my "American dream" home...now, I'm an un-employed retiredrenter....I couldn't be happier! Thank you, mr. President for the help !