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Market News and Trends, The Business of Real Estate

Let the market heal, and it will

I wrote several days ago about the effects of two rounds of homebuyer tax credits:  how much they distorted seasonal demand, and how difficult it is now to predict how long the post-incentive lull will last:

Tax Credits End, Sales Slow Down — Surprised?

Today, an article from the Los Angeles Times appeared in the Austin American-Statesman:

Despite the government’s best efforts, the housing market remains mired

It includes discussion of whether/how the government might continue trying to help, but as I ended my post on the subject (Stop helping!), this article concludes with excellent advice:

“Leave housing to market forces, let prices fall until buyers are motivated to come in, and hope that the economy can stand one final cathartic wave to clear the excesses of the bubble.”

This seems completely obvious to me, but then I have argued against these tax incentives since the very first rumor in 2009.  With very rare exceptions, markets are inherently smarter than the bureaucrats who seek to control them.  I have no doubt that the more the government tries to help the real estate market, the longer and deeper this downturn will be.  Let’s just let it be.  This too shall pass!

About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.


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