Housing Market Malaise: How Long Will Real Estate Remain Sick?

Elan Journo of the Ayn Rand Center and Tim Cavanaugh of Reason.com join Allen Barton to discuss the shadow inventory in the housing market. There are plenty of distressed homes on the market that could keep housing values deflated for some time. Should we help keep distressed owners their houses, even though such actions could prevent there recovery of real estate prices? See more at www.pjtv.com
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Comments

  1. LuxStarMedia says:

    If you want to close the deal and get the best price for your property, take it viral and? show it off with a stunning but cost effective promotional video. Check out our channel for some examples!

  2. But housing? prices WERE too high, and they should stay down.

  3. timberskid says:

    My realtor in California told me that? the banks have been instructed by the government when to release the shadow inventory onto the market. They have been holding these properties in fear of dumping them onto the market and crashing the whole real estate market. The solution? Release the inventory in increments.. starting with the more expensive homes in the more expensive neighborhoods. The whole thing is so distorted by govt in the markets it has turned into a monster!

  4. justintempler says:

    I’m in Florida it’s crazy down here. I know a guy that hasn’t? made a house payment in well over a year and it still isn’t in foreclosure.

  5. it’s not 8.2% we have 88 million not in the work force and 46 million of food stamps?

  6. stop? blaming bush

  7. USA nr one in high? taxes, weird.

  8. LordGouda says:

    They kept deferring their mortgage payments as long as possible, but sooner or later someone will have to pay. When it happened, it did so all at once. The mortgage note came due, and the consumers didn’t have $10K a month. Foreclosures waterfalled, and the market was flodded with homes. Prices crashed, and people that only bought 1 home were caught in the wave. People are still under water, but eventually if they keep making payments? they will level out. You go under every time you buy a car.

  9. LordGouda says:

    Remember the DVDs they used to sell: “Make millions of dollars using only your good name…”? The government pushed these loans through Fannie and Freddy, but no one wanted them. Eventually everyone became a speculator. People were taking out 4 or 5 loans intent on flipping the properties for a profit. Hence the bubble: when you have 100 families and 100 houses, you have market equilibrium. When each family now? wants 5 houses, you have artificial demand and prices rise.

  10. LordGouda says:

    The banks knew the loans were crap. No one wanted to touch them until Fannie and Freddie “securitized” them. Unfortunately for the banks and the consumers, the government securitized $1.5 trillion in credit with an insurance account that contained $250 billion. Oops. TARP wasn’t a bailout; it was a payback after the government backed? loans with taxpayer money they didn’t have.

  11. Tabris Esfahani says:

    Keeping the rates low wont help
    the lower rates=higher prices
    its the simplest of? all formulas when we talk about annuities like a mortgage

  12. Tabris Esfahani says:

    and yes? I agree with Elan, like many liberal policies, the ones proposed hurt and punish people who are responsible but not the idiots

  13. Tabris Esfahani says:

    there are 4 million foreclosures that are still unprocessed as well.

    Housing is fucked for years and years. My heart goes out of all the people who worked in real estate who? were honest and gave out reasonable loans; they suffer because of reckless lending and borrowing.

  14. IFoundIslam1 says:

    3-10% is the rule today.
    If you can afford to pay rent of $1,000 per month, for example, you can just as well pay for a home of your own at $1,000 per month. Now for the 3-10% down of which most is wasted on useless closing costs.
    I agree with you that the blame is with? people willing to take an ARM mortgage and the government. I’d also add greedy speculators.

  15. Dragdamar says:

    The housing crisis will continue as long as the Government profits from the crisis.? Not in $, but in fear.

  16. What is the #1 corporate tax rate? We’re number one in what? exactly? The highest tax rate?

  17. TheMadFlea says:

    My parents have 5 homes directly sorounding them that are in the same situation. Its? crazy! realotors dont have a clue what houses are worth when no one want to pay 100k+ for a house

  18. But I do appreciate the rational discussion, it doesn’t happen very often these days. Thank you,? and have a great day.

  19. MrEastRyder says:

    Home values are healthy. They are nice and low the way they should be. The housing bubble was one of the worst in history, people where buying craftman houses for 500,000 bucks it was nuts.?

  20. 20% down was the rule for decades for a reason, it proved that you had the means to be able to afford the home. It’s today’s rule for sure. We won’t solve the? problem here on youtube, you blame the banks, I blame the people and the government. There you have the two sides.

  21. IFoundIslam1 says:

    These loans were a major source of the problem along with the gov.
    10% dn is excessive in most cases. 30 yr fixed at 4%, what could a person afford as a monthly payment?? Go from there but no one needs the states raising property taxes everyone so that they have more money to waste.

  22. Sure, but when government tells banks that they have to give loans to people who can’t afford the home, how else will that be achieved? They don’t have the standard 20% down. In CA, a home was? minimum $600k. So does everyone have $120k for a down payment? No, they didn’t so special loans were created to comply with the demands of the government.but those same people were likely going to get scammed at the used car lot down the street. They weren’t devoid of their own responsibilities either.

  23. CountArtha says:

    Housing prices need to return to normal. They will never “recover” because the outrageous prices before the crash were not market? prices.

  24. IFoundIslam1 says:

    Everyone should own their own home. The lending practices I’m talking about are:
    Adjustable rates that start st 2% for the first 3 years that adjust up to 8-12% after that.
    Or the other practice of? 80% main loan as above then 20% remaining with a low int rate but a baloon payment in 3-5 yrs.
    It is all affordable for btwn 3-5 years, after that the person looses their house.
    Greedy lenders are another problem.