I think it’s almost impossible to turn on any news channel and not hear something about how bad our economy is doing, another blank closing, or how Fannie Mae and Freddie Mac got us into this real estate mess with their lending practices.
I have noticed in the Las Vegas Real Estate Market, at least for our business, a slight decline in interested buyers in the last few weeks. It could be the time of year that is causing the decline, but I suspect that the main culprit is the talk of how bad the economy is doing. The talk of the weakening economy and banks tightening their lending guidelines is not what potential buyers want to hear when they are deciding if they should purchase a home right now.
I still haven’t heard what we need to do to get us out of this mess we are in right now. The $700 billion bailout might be the answer but I doubt it will be. The bailout is mostly for all the banks and lenders to sell off their bad loans so they can lift the credit freeze and start lending money. Senator McCain made a statement in the Presidential Debate last night about the Government buying up the loans from homeowners who owe more than their home is worth and then get them into a 30 year fixed mortgage at the current market value. I would rather spend the $700 billion bailout this way than giving it to the banks and lenders.
Who knows how much something like this would cost the American tax payers!
It’s obvious we have to do something and soon or many of the real estate industry professionals will be out of business!
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In terms of our business here in Tampa, there’s no doubt the headlines of the last couple of weeks have spooked some would be buyers. We’ve had two pre-approved buyers in the last week go from house hunting to apartment hunting.