Spending Cuts in Washington could prolong the real estate depression! More BS.

Reblogger Mike Saunders
Real Estate Agent with Lanier Partners

I totally disagree with Tony on this. Increasing taxes will affect the housing market more than cutting government spending. Lower taxes means more discretionary money available. The government has increased spending by about 40% in less than 3 years. Cutting it back by the small percentage that is being proposed will still keep the spending too high.

Original content by Tony Lewis BRE# 01215778

Home prices have dropped in excess of 50% in many communities.  The average drop is closer to 38% at this time.  The most stable buyers have been people on the government payroll whether federal. state, county or city.  In fact, the public was upset that so many private sector jobs were lost while the public sector received job security.  This has been changing rapidly within the past year.  The new deal that is about to be passed in congress and signed by the President will demand massive cuts in Federal spending and not increase taxes.  This is wise for long term planning but will devastate the real estate market.  Loss of jobs is not the cause of this new crash, it's the threat that a job is not secure.  Most people won't take on new debt if they are uncertain about future employment.

Your Friend & Realtor,

Tony Lewis * RE/MAX of Valencia, Ca. * www.TonyLewis.com * tonyglewis@yahoo.com * 661-702-4720

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Rainmaker
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Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

In my opinion, the biggest reason the recession continues to linger on is because of all the government laws that have come down the pike from 2007 until now.  Dodd-Frank, lead-paint RPR rules, new HUD and GFE statements, SAFE act, Obamacare, etc. have all made everything more expensive and have made it harder for people to do business.  When the government imposes higher taxes, the rich simply take their business overseas and the middle and lower class have less to spend. 

Jul 31, 2011 04:22 PM #1
Rainmaker
1,820,375
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Mike, you are right on.  The government needs to get their nose out of the Real Estate business and let people get on weith their lives.  I have 2 buyers that are waiting for the next round of rebates/tax incentives before they buy. They can affoard to buy without any help.

Jul 31, 2011 07:48 PM #2
Rainmaker
589,712
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

The government needs to get its nose out of almost everything. They are trying to regulate everything and no longer does common sense come into play.

Well, it didn't say I couldn't use the ladder on top of my car! So I am suing!  And they said thing is they when these lawsuits, because few believe in personal responsibility and the jurors figure "Hey, it is a big company they can afford to pay!"

Aug 01, 2011 09:27 AM #3
Rainmaker
563,876
Mike Saunders
Lanier Partners - Athens, GA

Rob - those are a great contributor, but its also from lack of activity by the government to address impediments to progress (such as the progressive agenda) as well as taxes.

William - more and more people are waiting for taxpayer money to get them to buy anything

Than - there are some good reasons for government, but they are few. I would hate to have total caveat emptor, but what we have is way to far to the opposite end of the pendulum swing.

Aug 01, 2011 11:53 AM #4
Rainmaker
1,283,287
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

You knocked that nail in with one hit of the hammer Mike.  I would love for Mr. Tony to show me a cut, outside of defense that is.

Aug 03, 2011 07:29 AM #5
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Rainmaker
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Mike Saunders

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