What Will The Government’s Exit From Real Estate Do To The Honolulu Market?
December 22nd, 2009 categories: Rants & Riffs, The Market
Over the last year the Federal Government has taken an unprecedented role in stabilizing the real estate market (through tax credits and buying mortgage backed securities, as an example). So the question is how will their exit from the market in 2010 impact the overall health of the real estate market? My answer is I don’t know, but it is something that the smart investor should be focused on. Businessweek had a very interesting article on-line yesterday.
“The U.S. housing market has been on government life support for much of 2009. Thanks to the feds’ bounty of tax credits, purchases of mortgage securities, interest-rate cuts, and home loan programs, new and existing home sales are up. The median home price rose, to $177,900. What happens in 2010 depends on whether the market can stand on its own.
The big test comes this spring. The Federal Reserve says it will stop buying mortgage-backed securities by the end of March, a program that has helped make home loans more affordable and spurred sales. The market may also suffer a setback if the central bank hikes interest rates, as some economists predict. With foreclosures expected to jump, Moody’s (MCO) Economy.com estimates home values will fall 7.8% in 2010.”CLICK HERE TO READ THE ENTIRE ARTICLE.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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