Quote:
Originally Posted by BlueStreak
But..............the price of a home was artificially inflated before the crash and still is.
They are not selling because mortgage qualification standards have been tightened (I am told by a friend in the real estate biz.), and few can afford them under todays conditions. This, coupled with the unemployment situation, is why sales are so sluggish.
So, what to do? Liberalize qualification standards again? That's what led to this mess in the first place.
As I see it, homes will not begin to sell again until prices come in line with the ability of potential homeowners to pay under more strict terms that reasonably assure repayment.
Dave
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The problem is that the bankers absolutely refuse to lower the mortgages to the actual value of the house. So they foreclose (with all the attendant expenses) and end up selling the house at a big loss. Do they expect to make a profit on volume?
