Until people go back to work, the real estate market will not improve. This is worthy of a reblog.
With markets settling down to a slower pace after the mad rush to get into contract by April 30th, many realtors and economists are questioning whether we need another helping hand from the government to get a our business going. What's good for real estate is good for the economy - of course. I agree that real estate sales create a lot of business activity and consumer spending but I disagree that another tax credit like we had the past year would be the best way to go. Looking at under contract statistics for the past 18 months, it looks like all the tax credit did in our area was to bunch the sales together in a 6 week period leading up to April 30th. When you match where we are this year at this time as compared to last year the numbers are pretty flat. You could argue that things could have been worse without the credit but looking at other economic indicators we have improved over last year's picture.
What the real estate industry needs are job creation programs, creating real jobs that will last. When the jobs picture improves, the real estate picture will improve as well. From earnings reports that have been released recently many large corporations have been doing well and some are flush with cash. We don't need the government to give them any more money. In this country it is small businesses that really drive job creation - what small businesses need is capital - capital the banks are reluctant to give them. More government lending programs tied to job creation would be the best use of government resources for our real estate industry. Let's push for this long term solution for our short term problem.
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