Although recent government efforts to improve America’s housing markets have proven less than effective, renowned economist Dr. Mark Dotzour says bold government action can get the market back on track.
In an article released today, the chief economist for the Real Estate Center at Texas A&M University offers a four-part solution to fixing the housing crisis, one that involves more than simply devising ways to keep people in their homes.
Four Possible Solutions:
1. Curtail supply of new homes on the market.
2. Slow down homes coming back into the market through foreclosure.
3. Incentivize investors to buy and rent properties to tenants.
4. Lower mortgage rates to be in line with the Ten Year Treasury bond.
2. Slow down homes coming back into the market through foreclosure.
3. Incentivize investors to buy and rent properties to tenants.
4. Lower mortgage rates to be in line with the Ten Year Treasury bond.
Dr. Dotzour simplified the crisis to be an issue of too much supply and not enough demand which needs to be reversed. Lenders recognize the necessity of loan programs for investors to absorb the current housing glut.
This would be positive news for those looking for a place to invest their money. Real estate has remained a solid investment and will continue to be a sound investment. With lower interest rates and possible incentives to investors, this could turn into an opportune time to invest in residential real estate.
Dotzour's article is available at http://recenter.tamu.edu/pdf/1884.pdf.
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