Friday Musings

As I search the MLS to fill the needs of my various clients, I find my mind drifting to the housing market. I am trying to digest the most recent data on housing and figure out where we go from here.

All of the numbers I have seen on a national level over the last week or so have shown a dip in activity of 15%-25% since the end of the tax credit. Now I am no economist - nor am I a fan of wealth redistribution - but if the government is going to give away money, what better cause is there than home ownership? Homeowners take better care of properties than do renters, which is good for neighborhoods and house values in general. (It's similar to business owners caring more than employees about profitability: when you have skin in the game, you care more.) Moreover, economic recovery is much easier with a robust housing market. Without a rebound in housing (and jobs), we will limp along listlessly for quite some time. The FED simply cannot force interest rates down any further, so what are we left with? Answer: housing and jobs.

I urge everyone who reads this to e-mail your Members of Congress and request a renewal of the homeowner tax credit, and not just for first-time buyers. Even if you are not planning to buy or sell, it can only improve the value of your home and the economy as a whole.

On a more positive note, the Boston area numbers have been significantly better than the ones mentioned above.

As an aside and as I write this, the headlines on CNBC relate to the negative sentiment of home builders and the likelihood of a double dip in housing.