• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

The Politics of Falling Home Prices

That record annual decline in home prices announced on Tuesday seemed like more fresh evidence of an ailing economy that’s not set to rebound anytime soon. But Peter Viles of the Los Angeles Times blog, L.A. Land, looks at it differently, and so might others who live in bubble markets where homes appreciated dramatically during the boom. Viles points out that home prices in California, Las Vegas and elsewhere need to keep falling to go back to levels that are actually affordable to would-be homeowners. The pain just has to be endured.

Viles explains this to put in context his concern over recent remarks by Sen. Barack Obama, who told NBC’s Tom Brokaw over the weekend that there needs to a be a floor in the housing market, “a stop to the decline in housing values.” That may be helpful in Cleveland, but not in L.A., where a home remains out of reach for many people.

From Viles:

In some circles of Washington, and particularly the Democratic Party, this is not a controversial idea: that the government’s goal right now should be to stop the decline in housing prices. But here in Los Angeles — where housing prices remain high relative to income, and home ownership levels remain low relative to the rest of the country — there are many who believe the government should stand back and let the market determine housing prices. Example: The reader who calls himself “Home prices need to get lower,” who wrote here earlier today, “My ray of hope is that home prices will continue to slide and housing will become affordable again.” Another example: Reader “Manny,” who wrote here today that he makes $90,000 and can’t afford a decent house: “The markets are still not affordable. I hope more correction is on the way.”

Viles contends Obama’s remarks didn’t get noticed, but that he “committed some news” with them. I think Viles is picking up on something that still doesn’t get addressed in the housing bill or in other rescue ideas. The mortgage crisis is not a one-size-fits-all problem. The nearly $4 billion in the rescue plan for communities to buy up foreclosed houses won’t mean a thing in L.A. or Arizona, where buyers will soon enough scoop up bank-owned properties because they still have value. But it will be beneficial for Detroit or Buffalo, where that doesn’t happen because the properties aren’t worth it. When politicians weigh into this mess, they need to be careful their proposed solutions don’t end up offending the people they’re meant to assist.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.