Monday, September 27, 2010

How to help housing market - have a baby

A study from the University of Virginia looks at the current housing market and sees two reasons for continued weakness - changes in demographics and changes in where people want to live.
For one problem, there's a government solution - government working with buyers and developers to make more desirable existing housing in areas where the jobs are.
For the second problem, there's no short-term solution. If there's few buyers than sellers, then prices stay stable or drop. Not the expected rise many homebuyers thought they'd get when they signed the 30-year mortgage.
For happy sellers, you need buyers. We can produce them, but it takes about 30 years for the crop of babies to become homebuyers.
If you want to have a more comfortable retirement, have a child.

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