Friday Five: Housing Market Update

Published: August 26, 2011
By: Gavin Mathis
1Comment

Is home ownership poised for dramatic change? As Washington addresses the fallout from the housing bust and tries to put the country’s fiscal house in order, our legislators are debating proposals that will affect home values, who can own a home, the cost of home ownership, and how long it’ll take to become a home owner. How can you keep up on these shifting issues? Each week, check out our Friday Five — a roundup of housing news and views from K Street to Main Street.

Here are your quick hits for the week ending Aug. 26, 2011:

Politico: Dismantling the American Dream

Home ownership is a lynchpin of the American dream. This need not change, even after the Standard & Poor’s downgrade of the U.S. credit rating.

Washington Post: Can Housing Policy be an Effective Stimulus?

As we saw with Texas, the shape of a state’s housing market can go a long way in predicting local economic conditions. Note that there is a strong correlation between the percentage of underwater mortgages in a state (i.e., mortgages on which the home owner owes more than his property is worth) and the unemployment rate.

HouseLogic: Mortgage Interest Deduction Future Murky in Super Committee

Unless you slept through the month of July, you probably picked up on the federal debt ceiling debate that dominated headlines. Although much of the press and punditry subsided after the White House and Congressional leaders reached a resolution, the legislation signed by President Obama on Aug. 2 did little to settle the deficit dispute. Instead it passed responsibility to a bipartisan “supercommittee” and placed American home owners in the crosshairs of controversy.

South Florida Sun Sentinel: Save the Mortgage Interest Deduction

Home ownership is the primary engine of economic prosperity for families, and Neighborhood Housing Services of South Florida says Congress needs to promote policies that foster home ownership and home construction.

The New York Times: U.S. May Back Refinance Plan for Mortgages

The Obama administration is considering further actions to strengthen the housing market, but the bar is high: Plans must help a broad swath of home owners, stimulate the economy, and cost next to nothing.

Gavin Mathis

Gavin Mathis is a graduate student at George Washington University and a communications assistant with Quinn Gillespie & Associates in Washington, D.C.

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Ever noticed all the slick arguments some people make to get you to buy something so expensive that it takes you 25 to 30 years to pay for it. They want you to buy something you don't need with money you don't have. They talk about a home's appreciation (unrealized capital gain) as if it was easily negotiable. You don't buy a home to just sell it to get a gain. You buy it to live in. Why should government subsidize expensive home ownership with mortgage interest and property tax deductions and loan guarantees? A home is something you live in period. It's not the government's responsibility to take care of you from cradle to grave. Here's the bottom line. We simply need to eliminate unconstitutional exclusionary zoning so people can live where they want in a home that they can afford. It's not about teaching a man how to fish or giving him a fish it's about taking down the no fishing sign. Here's a typical example of exclusionary zoning. No home of less than 1,200 square feet, excluding open porches and garages, may be erected or placed upon premises. Could you imagine if we changed 'less' to 'greater' in that example. In a free society no one should be free to take away someone else's freedom. No one should be dictating how many square feet a home should have. The purpose of governent is to serve the people and not vice versa. America will be much stronger in the long run if we stay true to the golden rule as well as our constitution which states that we all have a right to life, liberty and the pursuit of happiness. In order to have life one has to have the necessities of life such as shelter. That shelter should be of one's own choosing and not someone else's choosing. Realtors can still make money on commissions because there will be people who freely choose all sizes and prices of homes. Governements will still collect property taxes and should just live within their means as individuals do. As noble prize winning economist Milton Friedman has said, freedom leads to prosperity. The 2008 recession was partially caused because the housing market is not free. Eliminating exclusionary zoning will make it free and we all will prosper. Thanks.
Posted by James on August 30, 2011