The Emergency Economic Stabilization Act of 2008, also known as ‘the bailout bill’ that has been dominating headlines in recent weeks, has real estate leaders talking about its impact on the industry, real estate markets around the country and the overall effect on consumer confidence when it comes to buying and selling.
Was the bailout necessary? The bailout was needed. It will allow banks and note holders to get direct liquidity. This is a strategy, though certainly not the complete answer to our current situation
What is the bailout’s effect on consumer confidence in the real estate market? It will take time for consumer confidence to come back to the market. I think something to be cognizant of is that people are now afraid for their jobs. Nothing changes overnight. We have a lot of instability and uncertainty in this country right now. We’ll have to wait and see how the country reacts to the bailout once things start to happen and the election is over.
Inventory is high. Consumers are just not confident in anything.
What do I think is needed to get consumers back to buying and selling?
If job security goes up, job demand will push real estate up as well. When more jobs come in, there are just more transactions. There are a lot of buyers who aren’t buying right now because they want to see what will happen-with the economy, with their jobs, with everything.
From the sellers point of view we need to look at the prices we’re offering. It needs to be a realistic price or it should be taken off the market. Then there wouldn’t be so much inventory.
So is now a good time to buy?
If you talk to people who bought their homes anywhere between 10-30 years ago, a good number of them will say that they wished they’d bought more. People are still looking for places to put their money. Would you really put your money in stock market right now? No, and it’s a great time to invest in real estate. There are great buys, prices are down and you can get a lot of great deals from foreclosures.
It’s all about the law of supply and demand. Lower the prices and they’ll be a big push. However, we also need to have the best professionals offering the best customer experience. We have to look out for our buyers and sellers. In the boom years, there were some in this industry that said, ‘We’ll sell it-even if they can’t afford it.’ We just need to sell people homes that make sense, and that they can afford..
We already have an FHA rescue program that authorizes government to help homeowners in danger of foreclosure. FHA acts as the mortgage guarantor, but there are several other option open to sellers in trouble too. My goal is to help those that don’t understand what those options are.
If you know of anyone that is experiencing financial difficulties and think that they might be in danger of loosing their home, have them give me a call. As a Certified Distressed Property Expert, I may well be able to help, even when they are in the late stages of the proceedings. Call me Vanessa Saunders at 845 598 5083 or email me vanessa@vteamny.com. I’ll do my very best to help.