Welcome to Deja Vu all over again for the national real estate market!!
Do you think that this industry will ever learn why the real estate market fell nearly into oblivion over the past 6 years? I don’t. Here is the web page from CNBC that discusses the new lower down payment for first time home buyers program aimed at “helping” first time home buyers to get a loan with nearly nothing down. As a 20 year veteran of the Lake Oroville real estate market I am disappointed to see that the government thinks that the best medicine for the long term stability of the housing market is LOWER down payments. What is even more disappointing will be when the lenders start showing up in real estate offices across this country touting these new programs as “great deals for buyers.” And just think how many more homes all you agents will sell with this new program!
Will there never be an end to the perception that buyer’s are so irresponsible and undisciplined that they are inept about saving money for a down payment. ( And by the way, if you are not disciplined or responsible enough to take the time to save up a down payment, you may not be ready for home ownership). The trend here should be that there be a gradual INCREASE in down payment requirements not a decrease. This will make the market much more stable when the next down turn occurs and will keep the bottom from completely falling out again.