My philosophy in business and life is having a balanced approach. The concept of balance in all things brings about harmony, growth, and clarity on how to move forward. This is where the housing market is currently failing. The housing market is way out of balance! Inventory is high, buyer and sellers are butting heads on pricing, foreclosure rates are increasing, and the government’s loan modification process is not working like it should (58% of loan modifications currently do not work).
Jim Gillespie, President and CEO of Coldwell Banker Real Estate LLC, appeared on Fox News this past Thursday to discuss the state of the housing industry. Here is the clip of Jim Gillespie Fox News Clip.
Bottom line: Housing Needs To Be Balanced! Yes, we are still in an economic “funk”, but there are steps we can take to improve this. The first thing we need to do is get people back out there buying Columbia City homes. We currently have approximately 9.8 months of inventory on the market. The media creates negative emotion and fear, paralyzing Columbia City buyers and sellers. How do we get more people willing to buy homes, thus stimulating local economies? According to Mr. Gillespie, the government should lower all 30 year conventional rates to 4% for 12 months. In addition, provide a $15,000 tax credit for “every” home purchased that is for a primary residence. Currently, there is an $8,000 tax credit for Columbia City first time home buyers. We need to offer buyers alternative incentives to the continual lowering of housing prices. Consumers are waiting for prices and rates to lower for the ultimate feeding frenzy.
This sit and wait approach is stagnate. When in a recession, 6 out of the 7 times housing has brought us out. If we can balance housing, we can begin to see the economy balanced!