There is all this talk about “reigniting the housing market.” This is a joke.
Let me tell you what will make housing demand go up.
One: Everyone who lost a job or now works part-time since 2001 gets a well-paying job.
Two: Every group whose income has been flat since Reagan took office gets a raise to match the raises CEOs got.
Three: Bring the price of houses back to earth. Where I live you need an income of $10,000 A MONTH to qualify for the lowest-priced house on the market — AFTER 20% down.
See Why housing is stimulative, and politically smart,
“Unless the stimulus bill includes some fix for housing demand, it just won’t be successful,” says Gear, whose coalition includes homeowner and community groups and home builders.
Oh, that reminds me, Four: Make everyone forget that housing prices actually CAN go down.
After taking ALL these steps, including dropping housing prices back to where they should be, then you might see housing prices stop dropping. Any ideas that you can “fix housing” in the stimulus package are fantasy.