The Feds continue to lower interest rates and keep interest rates in hopes that it will stimulate the economy and hopefully improve the housing market. When it comes to home sales this past month proved not to be effective.
While interest rates likely need to remain low to really spur economic recovery there must be something more to the solution to increase home sales going forward. In addition to extremely low interest rates perhaps there needs to be some kind of incentive to purchase homes at this time.
We all know that the banks are making it very difficult to refinance and to purchase or in other words for them to lend their money. Finding a way to reward those buyers out there that don't fall in the category of the rich and international.
The home sales are being split into two different categories even more often as the economy and housing market continues to struggle. The rich and international are having a buying frenzy that will likely result in additional revenue and wealth on their part and the rest of us are struggling to make ends meet and not catching any breaks.
If you have any ideas on how we could improve the outlook for those on “main street” then please share your ideas. Perhaps if you buy a home in the next year and you don't make more then $250,000 a year you could get a tax credit for 10% of the purchase price? That is one suggestion that may benefit “main street”.