You're reading...
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

Many years of business experience (high tech, client service, business organization and start-up, including 18 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. Learn more about my background and experience, my commitment to my clients, my profession, and to the real estate industry at CentralTexasHomeSearch.com.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: