My Real Estate Wish List for President-Elect Obama

1. Get the foreclosures off the real estate market. One of the major factors depressing the Real Estate market is the sheer number of foreclosures being dumped on the housing market by banks, which is also happening right here in Tempe, AZ. If the new administration can find a way take the foreclosures off the real estate market (by covering monthly mortgage payments for the banks, putting people back to work shoring up and maintaining these properties, then bringing them back onto the housing market slowly) — this would have an immediate impact on the supply and demand of the Real Estate market and average home prices would quickly recover. Tempe’s communities and local real estate market would greatly benefit from removing these foreclosures off the housing market.

In time, these foreclosed homes could sell for more than they are listed at now.  (Sheila Bair, head of the FDIC, was reported to be strongly advocating government intervention to help refinance mortgages threatened with foreclosure.)

2. Help first-time home buyers get back in the housing market. I would defer to my colleagues in the lending industry to come up with a solution although I would imagine that the appropriate carrot and stick for helping first-time home buyers could be provided by the administration. This would start the engine cranking. First-time home buyers would get back in the market and those who are trying to sell their homes could move up the Real Estate ladder to bigger and more expensive new homes.

3. Credit those who are making the community Green. Provide credit opportunities for homeowners and builders working to make their homes greener and more energy efficient. This could be an economic engine with far-reaching effects for both the construction industry and the planet.

The Impact of Obama as President-Elect

The impact on the economy in general will be positive. There will definitely be an international financial market recovery spurred by the popularity of Obama abroad that should impact our own financial markets. This breath of fresh air and the ensuing political honeymoon will be favorable for all aspects of the economy until the tough decisions and real belt tightening have a chance to work. By the New Year, I believe we will see some immediate positive impacts occurring in the Real Estate market … so get ready to act quickly if you want to ride the wave.

Posted on Friday, November 21st, 2008 at 1:04 pm and is filed under Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.